Sourcing Business Model theory grew out of a collaborative research project led by the University of Tennessee. The concept was first shared in The Vested Outsourcing Manual: The Guide for Creating Successful Business and Outsourcing Relationships. The theory was later refined in collaboration with the Sourcing Industry Group, the International Association for Contract and Commercial Management, and the Center for Outsourcing Research and Education in a white paper first published in 2012, then revised in 2015. The white paper inspired the book Strategic Sourcing in the New Economy: Harnessing the Potential of Sourcing Business Models for Modern Procurement, which provides a robust understanding of the how to turn the theory into practice.

This Sourcing Business Model toolkit is provided as an open source resource for organizations to use on a non-commercial basis to help improve their sourcing efforts. The toolkit is designed to complement the book.

This toolkit includes three resources.

1. Business Model Mapping Diagnostic – easy to follow instructions and templates to help you to determine which Sourcing Business Model is most appropriate for your situation

2. Business Model Architecture “Cheat Sheet” –a one page quick reference guide to help you sense check how to properly architect supplier agreements for each of the Sourcing Business Models

3. Sourcing Consideration Checklist – a series of seven checklists (one for each Sourcing Business Model) that provides an easy to use way to ensure you are not forgetting any major decision points that need to be made as you work through your sourcing initiative.

Contributors: University of Tennessee
Categories: SIG U Resource, Tool
SRC Type: Sourcing, Strategy