Strategic Sourcing

Strategic sourcing is a term that refers to an intuition’s procurement process in which improvements and re-evaluations are continually being made. The procurement process is a term that is used by businesses to describe the buying procedure. The procurement process can also refer to the buying of supplies or services. Procurement is the gaining of commodities by a company, organization, institution or a person. The procurement process, in general, is the buying of goods from suppliers at the lowest cost possible. The procurement process usually begins when the procurer starts to search the market for bidders.

After establishing who the bidders are, the procurement process continues by requesting bids so that proposals, quotes and information can be made. Once qualified bidders are chosen through strategic sourcing, an evaluation is essential in order to confirm the suitability of the supplies in question. The entire procurement process must be completed in compliance with the existing laws in order to stay away from any legal problems. The actual procurement process may vary from company to company, but the actual process is generally similar.