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Strategic sourcing leverages the organisation to build a stable, consolidated supplier base with long term cost, quality, delivery benefits. It provides continous improvements over these factors and empower the organisation to take advantage of purchasing power. It provides a robust procurement planning for direct materials in any manufacturing organisation
Strategic Sourcing empowers the organisation to make most out of the supplier considering the long term relation and supply base.Also it gives an understanding for cost associated with different commodities so that you have the focus group of commodities to optimize cost.
It also gives a clear cut procurement plan to work upon and to bind your suppliers with contractual obligations to mitigate risks
Strategic sourcing is one of the most important aspect of Procurement. It can help in:
1. Getting quality products at best value
2. Improved and sustainable relationships with suppliers
3. Package Offers / Fixed price contracts / Better responsiveness
4. Best value purchases based on Total cost of ownership
