startegic sourcing

[Former Member]

Hi all,

What is startegic sourcing? please give me detailed.

thanks&regards

venkat

[Former Member · Accepted solution]

HI Murali,

Strategic sourcing is a corporate/institutional procurement process that continuously improves and re-evaluates the purchasing activities of a company. It is one component of supply chain management.

Following are the steps in a strategic sourcing process are:

1) Assessment of a company's current spend (what is bought where?)

2) Assessment of the supply market (who offers what)?

3) Development of a sourcing strategy (where to buy what, while minimizing risk and costs)

4) Identification of suitable suppliers

5) Negotiation with suppliers (products, prices)

6) Implementation of new supply structure

7) Track results and restart assessment (continuous cycle)

Strategic sourcing was initiated by General Motors in the 1980s.

Thanks

Venkat Bandaru