GlossaryEN1 min readUpdated: Jun 13, 2026

Sourcing Strategy

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

Last updated: 13 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 organization 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. In supply chain management, it provides the structural backbone that keeps procurement consistent and resilient. Companies without a defined sourcing strategy are particularly exposed when suppliers fail or market conditions shift. A well-designed strategy aligns procurement, logistics, and compliance into a coherent framework.

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