Strategic sourcing is the process that identifies the spending profile of a business and its suppliers. It constantly re-evaluates and enhances business procurement activities.
Strategic sourcing intends to achieve the lowest Total Cost of Ownership along with minimal supply chain risk. It involves developing a proactive, holistic, and continuous evaluation process of the sourcing activities in an organization.
Suppliers are crucial value partners of a business organization. The selection of appropriate suppliers with the highest value at the right pricing enables organizations to achieve higher cost savings. Strategic sourcing aims to build sustained collaborative relations with suppliers.
Below are the key benefits of Strategic Sourcing:
- Increased level of cost-saving
- Better alignment of Sourcing and Business Objectives
- Standardizing the Ideal Supplier
- Improved relationship with supplier
- Lesser Disruption to Supply Chain
Try out the free demo for Strategic Sourcing Analysis using Microsoft Power BI here.