Definition

strategic sourcing

Strategic sourcing is an approach to supply chain management that formalizes the way information is gathered and used so that an organization can leverage its consolidated purchasing power to find the best possible values in the marketplace. 

Strategic sourcing requires analysis of what an organization buys, from whom, at what price and at what volume. Strategic sourcing differs from conventional purchasing because it places emphasis on the entire life-cycle of a product, not just its initial purchase price. 

Strategic sourcing software modules can facilitate the approach by standardizing sourcing requirements and providing users with federated data technology with which to share information about products, markets and business needs. The systems on the market that enable strategic sourcing are still often labeled as procurement software, sold within enterprise resource planning  (ERP) systems, supply chain management systems or standalone products.

This was last updated in April 2012
Posted by: Margaret Rouse

Email Alerts

Register now to receive SearchFinancialApplications.com-related news, tips and more, delivered to your inbox.
By submitting you agree to receive email from TechTarget and its partners. If you reside outside of the United States, you consent to having your personal data transferred to and processed in the United States. Privacy

More News and Tutorials

Do you have something to add to this definition? Let us know.

Send your comments to techterms@whatis.com

There are Comments. Add yours.

 
TIP: Want to include a code block in your comment? Use <pre> or <code> tags around the desired text. Ex: <code>insert code</code>

REGISTER or login:

Forgot Password?
By submitting you agree to receive email from TechTarget and its partners. If you reside outside of the United States, you consent to having your personal data transferred to and processed in the United States. Privacy
Sort by: OldestNewest

Forgot Password?

No problem! Submit your e-mail address below. We'll send you an email containing your password.

Your password has been sent to: