Sourcing Strategy Definition
A sourcing strategy is a plan that a company uses to determine where to procure goods and services. The sourcing strategy takes into account cost, quality, lead time, and other factors to make the best decision for the company.
The first step in developing a sourcing strategy is to understand the company’s business needs. Once the needs are understood, the next step is to identify potential suppliers that can meet those needs. The company then evaluates the suppliers and chooses the one that will provide the best value.
The sourcing strategy should be reviewed on a regular basis to ensure that it is still the best option for the company. supplier relationships should also be monitored and managed to ensure that they remain strong.
