To select the best product or service for a certain category of spending, sourcing is used. The customer operates in cooperation with internal customers or budget holders when choosing vendors through a tender or sourcing method.
Why use a formal strategic sourcing process?
Experience has shown that the strategic procurement method of 7 steps; established in 2001 has stood the test of time and has become a best practice with differences. The primary objective of strategic sourcing is to save money, but other reasons include improving the process of procurement, performing providers, and minimizing danger. Below is a summary of the 7 Step Strategic Sourcing Process and an explanation of each step.