A systematic and collaborative process of identifying, evaluating, and selecting suppliers to ensure the procurement of goods and services aligns with an organization’s overall business strategy.
The practice of managing and nurturing relationships with suppliers to create value, foster collaboration, and achieve mutual benefits over the long term within the context of strategic sourcing.
A comprehensive assessment that considers not only the purchase price of goods or services but also all associated costs throughout their lifecycle, including maintenance, operation, and disposal.
A formal document issued to potential suppliers outlining the specific requirements, expectations, and evaluation criteria for a proposed project or contract, commonly used in strategic sourcing.
The intentional inclusion of suppliers from diverse backgrounds, including minority-owned, women-owned, and small businesses, in the procurement process to promote economic inclusivity and innovation.
The practice of procuring goods or services from suppliers located worldwide, often employed in strategic sourcing to leverage cost advantages, access specialized expertise, and diversify the supply chain.
The process of comparing an organization’s sourcing and procurement practices against industry standards or best-in-class benchmarks to identify areas for improvement.
A strategic approach to sourcing that involves grouping similar products or services into categories and developing specialized strategies for each category to optimize value and efficiency.
A performance measurement tool used in strategic sourcing to evaluate and rank suppliers based on predefined key performance indicators (KPIs) and strategic objectives.
Collaborative partnerships established between a buyer and a supplier to achieve shared goals, enhance innovation, and create a competitive advantage in strategic sourcing.