oboloo Glossary

Sourcing Strategy Definition

oboloo Glossary

Sourcing Strategy Definition

A sourcing strategy is a plan developed by procurement professionals to determine how goods and services should be sourced for optimal benefits. It is an important component of the entire supply chain management process, as it identifies the most cost-effective and efficient way to acquire products, materials, and services from suppliers. A successful sourcing strategy will consider factors such as price, quality control, availability, delivery time frames, and other requirements that must be met in order to create a mutually beneficial supplier-buyer relationship. Sourcing strategies can range from simple one-time orders to complex objectives requiring multiple suppliers and long-term contracts.