Strategic Sourcing is a procurement strategy for value creation within purchasing processes, focused on building mutually beneficial results for all parties involved.
Strategic Sourcing is to Traditional Procurement what IoT has been for Warehouse and Inventory Management:
A shift in process, a means for innovation and a requirement for a new mindset.
“A key difference to conventional purchasing is that strategic sourcing focuses on converging and sustaining buyer-supplier relationships. The objective is to leverage them, exploit their capabilities, integrate and complement the core competencies of the various partners in the supply chain (interdependence) in order to provide value, cost efficiencies and uniqueness to the customer” (smartprocurement.co.za 2017).
Strategic sourcing is a methodology for higher-collaborative value creation amongst all supply chain actors.
For this very reason, its proper implementation could quite possibly be the most influential element of an overall procurement strategy.
So… What do I know that you don’t already know?
Maybe nothing, maybe a whole lot. Maybe, just a shift in perspective from your current understanding of what it means to practice successful strategic sourcing.
Here are: 3 Keys for improving your Strategic Sourcing.
1) Profitability and Sustainability: Aligned
Cost isn’t the sole factor for success within strategic sourcing, but rather building long-lasting relationships with suppliers in order to leverage the best possible value.