If you are a Supply Chain professional, specifically in the Purchasing field, you have definitely heard about Strategic Sourcing at some point. But do you really understand what this is? If not, don't worry, we will help you understand how simple and uncomplicated it is.
Strategic Sourcing is a methodology that aims to transform purchasing processes. The term became popular between the late 1980s and early 1990s when consulting giants PwC, KPMG and A.T. Kearney (among others) started their...
What does it really mean?
Why this step is the most important one
In our previous text, we discussed the 7 initial steps of Strategic Sourcing methodology (Assess the category profile, select the purchasing strategy, access the supplier portfolio, select the implementation method, select the supplier and negotiate, integrate the supplier and monitor the market). However, in the mid-2010s, the idea of incorporating an eighth step into this methodology gained momentum. Now we'll explain why.
The eighth step refers to supplier management. Studies show that...