Delivering Customer Value through Procurement and Strategic Sourcing: A Professional Guide to Creating A Sustainable Supply Network

3. Strategic Sourcing and Delivering Customer Value

In Chapter 1, “Purchasing, Procurement, and Strategic Sourcing,” we defined strategic sourcing as a focus on the whole supply network, its linkages, and how they impact procurement and purchasing decisions. More specifically, the focus was primarily on the Tier 1 supply network, value creation, risk and uncertainty in the supply chain, and the overall responsiveness and resilience of the supply chain. In other words, the ultimate purpose of any strategic sourcing system is to satisfy customers with the greatest possible value at a market competitive cost. In this chapter, we look at laying a foundation for synchronization between our strategic sourcing processes and delivering customer value. ...