Tactical buying is a shorter-term purchasing approach that focuses on the tactical aspects of procurement. It involves sourcing, selecting and procuring products and services to meet immediate operational requirements. This can include anything from analysing current spending patterns, comparing prices and negotiating supplier contracts for short-term gains.

Strategic sourcing, on the other hand, requires a more comprehensive approach to procurement. It encompasses an ongoing analysis of both current and potential supplier relationships and evaluates their financial impact over the long term. Strategic sourcing looks at ways to optimise total cost ownership (TCO) by finding solutions that increase value while reducing costs. By evaluating suppliers holistically instead of simply examining pricing and delivery times, strategic sourcing minimises risk while maximising return. Ultimately, it provides organisations with significant cost savings and increased operational efficiency.