![]() Analyze product categories used by the business, spending patterns, and the processes and departments involved. ![]() The strategic sourcing process has many variations, but is most commonly broken into seven steps popularized by consulting firm A.T. Outsourcing providers for strategic sourcing exist for organizations that wish to delegate the function to a specialist.Äownload this entire guide for FREE now! Strategic sourcing process steps Strategic sourcing is generally practiced by large organizations with many suppliers. Once selection and negotiations have taken place, strategic sourcing also involves measuring performance and improving the process on a continual basis. The process begins with analyzing business needs and historical spending, followed by outlining a strategic plan, and then conducting data collection and market analysis that guides selection of a roster of suppliers. A sourcing plan can instead allow them to develop an adaptable system that contributes to the overall value of the business long term. How it worksÄ«usinesses can use strategic sourcing to make their procurement processes less shortsighted and focused on price. Strategic sourcing differs from conventional purchasing because it places emphasis beyond initial purchase price to focus on total cost of ownership and optimizing the sourcing process through ongoing market analysis and building relationships with suppliers. It requires analysis of what an organization buys, from whom, at what price and at what volume. ![]() Strategic sourcing is growing in popularity, as digital transformation is causing procurement and supply chain processes to evolve. Strategic sourcing is an approach to supply chain management that formalizes the way information is gathered and used so an organization can use its consolidated purchasing power to find the best possible values in the marketplace and align its purchasing strategy to business goals.
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