The 5 Step Strategic Sourcing Process is an official business definition of the process used to source materials and services from external suppliers. It is designed to help organizations decide which supplier they should obtain materials and services from, and how to negotiate the best terms and conditions for the purchase. The steps involve: Step 1: Define Requirements – This is the first step of the process and involves clearly defining the requirements of the product or service. Step 2: Supplier Selection – This step involves researching potential suppliers, assessing their capabilities and selecting the best-suited supplier. Step 3: Negotiation – This step involves negotiating terms and conditions of the purchase and agreement. Step 4: Contract Execution – This step involves signing the agreement and confirming the purchase. Step 5: Performance Management – This is the final step of the process and involves monitoring the supplier’s performance over time. This step helps organizations ensure that their suppliers are meeting the agreed upon performance standards. The 5 Step Strategic Sourcing Process is