Strategic sourcing is a supply chain management practice that involves working with suppliers to identify and secure the best possible deals for goods and services. The goal of strategic sourcing is to create value for the company by getting the best quality goods and services at the lowest possible price.
Important Supply Chain Sourcing
The first step in strategic sourcing is identifying the company’s needs. This includes understanding what goods and services are required, how much of each is needed, and when they are needed. Once the company’s needs are understood, the next step is to identify potential suppliers who can provide the goods and services required. The final step is to negotiate with the chosen supplier or suppliers to get the best possible price and terms for the company.
Not All Suppliers Are Created Equal
Strategic sourcing is an important part of supply chain management because it can help companies save money and improve their overall competitiveness. When done correctly, strategic sourcing can lead to significant cost savings for a company. It is important to remember, however, that not all suppliers are created equal and that not all deals are good deals. It is important to do your homework and understand the market before entering into any agreements.