forlesskda.blogg.se - Ariba sourcing module

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However, strategic sourcing is a larger concept that aims to improve the procurement process of your business and ensure the lowest cost for the whole process. Sourcing is simply the process of identifying the suitable suppliers for your business to procure products and services at the optimal price. You will also see a difference between two terms – sourcing and strategic sourcing. You will have to factor in the total sourcing cost, including the price for creating contracts, time factors, and transportations, not just the direct purchase cost. However, if you consider long-term prospects, you will have to consider many additional factors where the concept of sustainable savings comes into play. But can the lowest price always guarantee you the highest savings for your business? For a very short-term, it might. In a traditional sense, many of us often look at sourcing with a narrower view: finding a supplier and negotiating to secure the lowest possible price.