Strategic sourcing has historically been a focus at very large, complex enterprises. Today, this is a process that can be implemented at an organization of any size. Oftentimes the stated goal of strategic sourcing is to reduce cost. This should not be the only goal, but rather one in conjunction with risk reduction, improving quality, fostering innovation, etc.
Strategic sourcing is a term that continues to increase in popularity. Penned in the 1980s, this is a phrase that today results in more than three million results in online searches. It is the focus of a vast number of blogs, newsletters, tweets, etc. A cottage consulting industry has been spawned, and universities are beginning to incorporate strategic sourcing into their graduate school curriculums. This article will outline the strategic sourcing process and discuss the impact that a distributor can make.