Strategic sourcing
Encyclopedia : S : ST : STR : Strategic sourcing
Strategic sourcing is a systematic corporate/institutional procurement process that continuously improves and re-evaluates the purchasing activities of a company. It is one component of supply chain management.
While most organizations implement strategic sourcing initiatives for the purposes of saving money, other reasons for implementing strategic sourcing include improving supplier performance and minimizing risk.
The steps in a strategic sourcing process are:
- Assessment of a company's current spend (what is bought where?)
- Assessment of the supply market (who offers what)?
- Development of a sourcing strategy (where to buy what, while minimizing risk and costs)
- Identification of suitable suppliers
- Negotiation with suppliers (products, prices)
- Implementation of new supply structure
- Track results and restart assessment (continuous cycle)
See also
References
- Nishiguchi, Toshihiro. Strategic Industrial Sourcing (New York: Oxford University, 1994) ISBN 0195071093
External links
- [Procure IQ] - News and commentary on strategic sourcing and supply chain management.
- [Purchasing magazine]
- [European Leaders in Procurement magazine]
From Wikipedia, the Free Encyclopedia. Original article here. Support Wikipedia by contributing or donating.
All text is available under the terms of the GNU Free Documentation License See Wikipedia Copyrights for details.