Strategic Sourcing Fact Sheet

Abstract

Over the past decade Strategic Sourcing has grown and evolved within state procurement. There is no one definition for strategic sourcing; according to the Office of Management and Budget, Strategic sourcing is the collaborative and structured process of critically analyzing an organization's spending and using this information to make business decisions about acquiring commodities and services more effectively and efficiently. Nonetheless, there are many benefits and certain challenges of strategic sourcing, as well as general principles to develop a strategic sourcing process. A survey and interviews with state central procurement officials have also revealed several major trends in strategic sourcing.