Capterra Glossary
Strategic Sourcing
Strategic sourcing is a form of supply chain management that involves examining all aspects of working with a particular supplier. This process includes analyzing data, market research, risk evaluations and needs assessments instead of simply considering the lowest purchase price.
What Small and Midsize Businesses Need to Know About Strategic Sourcing
Using strategic sourcing is crucial for SMBs that want to remain competitive, reduce costs, prevent interruptions within the supply chain, and form stronger long-term relationships with suppliers.
Related Terms
- Enterprise Resource Planning (ERP)
- Procurement
- Total Cost of Ownership (TCO)
- Vendor
- Supply Chain Planning (SCP)
- Telematics
- Senpai
- Vendor Management
- Value-Added Reseller (VAR)
- Bill of Materials (BOM)
- Supply Chain
- Smart Factory
- Scanner
- SCADA (Supervisory Control and Data Acquisition)
- Radio-frequency Identification (RFID)