Procurement is the process of
1. Finding,
2. Agreeing terms and
3. Acquiring goods, services or works
from an external source, often via a
a) tendering or
b) competitive bidding process.
Strategic sourcing is a systematic approach to procurement.
It involves
1. analysing spend,
2. understanding market dynamics, and
3. building strong supplier relationships.
The goal is to help the team make informed decisions that align with your company’s overall objectives.
When applied correctly, strategic sourcing helps procurement move beyond transactional purchasing by adopting a proactive, value-driven approach.