Strategic Sourcing Definition
1Strategic Sourcing is a structured process of integrated task analysis based on which the make-or-buy decision is made on future procurement of services in an effective and efficient way.
Companies strive daily to reduce their procurement costs. A key enabler for reducing procurement costs and achieving further competitive advantages – such as quality improvement, access to leading edge technology, ensuring high service availability – is the use of Strategic Sourcing.
The sourcing process ranges from the development of the sourcing strategy to selecting the suppliers and to the transition.
- Create the basis for increasing returns through appropriate make-or-buy decisions by:
- purposefully purchasing commodities services
- focusing on the value-added processes
- Increase competitiveness through:
- cost reduction through enterprise-wide purchase and targeted selection of strategic partners
- quality improvement
- access to leading edge technologies
- Preparation of an actual situation
- Differentiation of services
- Development of sourcing scenarios
- Specifications for supplier selection
- Supplier evaluation
- Contract negotiations
- Support and assistance during the transition phase