Resource Origin: Purchasing & Procurement Center

“There are a number of different definition of sourcing but mainly there are two major definitions: strategic sourcing and global sourcing.

Definition of Sourcing I – Strategic Sourcing

The first Sourcing definition i.e. strategic sourcing is a concept that was popularized by major consultancy companies in the late 1980’s 1990’s and is now considered a standard purchasing strategy used by many blue chip companies.

However, the most popular definition of sourcing is strategic sourcing. This is the process of taking advantage of purchasing opportunities by continually reviewing current needs against purchasing opportunities.

Strategic sourcing was first established by General Motors in the 1980’s and is now a common business purchasing tool. The rise of China and its manufacturing capabilities has opened up numerous strategic purchasing opportunities.

Strategic sourcing is often used for high valued services, ad hoc purchases and core large values purchases. There are several processes within the strategic sourcing process and these are…”

https://www.purchasing-procurement-center.com/definition-of-sourcing.html

Contributors: Open Source
Categories: Industry Articles, SIG U Resource
SRC Type: Sourcing