Strategic Sourcing

Strategic sourcing is a term that refers to an intuition’s procurement process in which developments and re-evaluations are constantly being made. The procurement process is a term that is used by businesses to describe the buying process. The procurement process can also refer to the purchase of supplies or services. Procurement is the gaining of merchandise 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 commences 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 created. Once qualified bidders are chosen through strategic sourcing, an evaluation is essential in order to confirm the suitability of the goods in question. The entire procurement process must be completed in compliance with the existing laws in order to prevent any legal complications. The actual procurement process may differ from company to company, but the actual process is typically similar.