Reactive and strategic sourcing approaches are not mutually exclusive, however, strategic approaches are preferable because of their inherent ability to maximise value (Bullen et al., 2010)

Information about Sourcing

Sourcing is a critical activity that commands increasing attention as managing supply chains becomes more complex (Trautmann et al., 2009). It is used at both tactical and strategic levels and is concerned with what needs to be purchased (product/service), in what quantities, for what purpose and where (domestically/from a foreign supplier)(CIPS: Developing and implementing a strategic sourcing strategy; Owens et al., 1998; Hinkelman, 2008).

Major approaches to sourcing include reactive, tactical and strategic sourcing (Owens et al., 1998; van Weele, 2010).

Return to Understand Need - Market and Options Assessment topic.

Related concepts

How to Prepare and Evaluate Tenders

An offer, usually in writing, to execute work or supply goods or services at a stated price, and under stated conditions.

Find out more