Strategic Sourcing in Procurement is a collaborative and rigorous process used to identify, select, and manage suppliers of goods and services. It consists of four distinct steps: assessing requirements, understanding the market, negotiating prices or costs, and contracting. With this approach, organizations can achieve cost savings, improve efficiencies, increase their competitiveness, and increase their overall organizational performance. Strategic Sourcing also provide organizations with an opportunity to meet changing customer needs while managing risks associated with procurement. Ultimately, through successful implementation of strategic sourcing, organizations can make supplier relationships more effective and profitable.