ABSTRACT
Strategic sourcing should not be confused with simply using centralized procurement to leverage volume buying. In its broadest sense, strategic sourcing expands an organization's focus to the supply chain impacts of procurement and purchasing decisions, with the goals of achieving large and sustainable cost reductions, long-term supply stability, and minimization of supply risk. The Lean sourcing maturity model shows the relationship of developing a Lean philosophy that can be integrated and work hand-in-hand with strategic sourcing over time. The chapter presents case studies which show some examples of how strategic sourcing can be combined with a Lean, efficient, and Agile philosophy to improve the top- and bottom-line. The collaborative team only reached the initiative's primary goal of creating cost savings without any major disruption of the client's business processes, but also an implemented the tools, insight, and relationships necessary to continuously improve the sourcing procedures.
