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Sourcing

Master strategic sourcing processes that optimize supplier selection, improve cost management, and enhance supply chain performance through systematic procurement.
Sarah Dotson

What is sourcing?

Sourcing is the strategic process of selecting suppliers and establishing supply agreements to obtain goods and services. This comprehensive approach includes supplier identification, evaluation, selection, and relationship management to ensure optimal value and supply chain performance.

Understanding sourcing strategies

Modern sourcing combines strategic planning with systematic execution to optimize supplier selection and management. These processes evaluate multiple factors including cost, quality, reliability, and risk to ensure optimal sourcing decisions.

Key sourcing components

Essential elements include:

  • Supplier identification
  • Bid management
  • Contract negotiation
  • Performance monitoring
  • Risk assessment

Sourcing applications

Organizations implement strategic sourcing to:

  1. Reduce costs
  2. Improve quality
  3. Manage risk
  4. Enhance reliability
  5. Optimize value

Implementation considerations

Successful sourcing requires:

  • Market analysis
  • Supplier evaluation
  • Contract management
  • Performance metrics
  • Relationship development

Sourcing impact

Effective sourcing delivers improved supply chain performance through optimal supplier selection and relationship management.