GlossaryEN1 min readUpdated: Jun 22, 2026

Sourcing Strategy

Unlike reactive, ad-hoc purchasing, a sourcing strategy is a forward-looking plan that defines how an organisation builds and manages its supplier base over time.

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Last updated: 22 June 2026Published: 19 June 2025

Source: https://www.investopedia.com/terms/s/sourcing.asp

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Logistics Concept

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Unlike reactive, ad-hoc purchasing, a sourcing strategy is a forward-looking plan that defines how an organisation builds and manages its supplier base over time. It establishes fundamental choices: single versus multiple sourcing, regional versus global supply footprint, and make-or-buy decisions, alongside measurable targets for cost, quality, delivery performance, and risk mitigation. Companies without a defined strategy are particularly exposed when suppliers fail or market conditions shift unexpectedly. A well-designed sourcing strategy aligns procurement, logistics, and compliance into a coherent framework, providing the structural backbone for a resilient supply chain.

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