Strategic sourcing is a fact based and systematic approach that organizations use to optimize the management of their supply chain. The approach focuses on improvement of the overall value proposition. This means that it does not entirely look at cost but on ensuring that the right services and materials are available to the organization when needed and in quantity required at
the best possible value.
The process involves making decisions based on facts obtained through market intelligence and analysis. This continuous process is collaborative and not reserved for the purchasing functions of the organization only. The process gears towards getting the best services or products at the best value.