What is the main goal of a sourcing strategy?

The main goal of a sourcing strategy is to determine spending patterns and define requirements. This involves analyzing how much the company spends on various goods and services and understanding its needs to fulfill operational requirements effectively. By identifying specific requirements and spending trends, organizations can align their sourcing processes with their strategic objectives, ensuring that they acquire the right products at the right price and time.

Understanding spending patterns helps companies to negotiate better terms with suppliers, assess potential cost-saving opportunities, and make informed decisions about the sourcing of goods or services. This foundational knowledge allows businesses to create a sourcing strategy that optimizes spend, enhances supplier relationships, and supports overall business growth.

While factors like product delivery schedules, supplier profits, and inventory levels are important considerations in the broader context of procurement and supply chain management, they are not the primary focus of a sourcing strategy. The essence of effective sourcing lies in establishing a clear understanding of what is needed, ensuring that strategy aligns with the company's goals and market demands.