Strategic sourcing can be described as an integral component of business administration. It deals with forming a successful relationship with the best suppliers and is aimed at enhancing organizational output both in terms of quality and savings. This involves examining total costs incurred by the organization- right from evaluating purchasing activities of raw supplies up until the final stages involved in issues of production.
It continuously examines and reevaluates its existing relationships with its suppliers and is in charge of introducing cost cutting measures without having any impact on issues such as quality. The <a href="http://gep.com/strategic-sourcing " target="_blank">strategic sourcing</a> methodology goes through many stages of analysis and part of its work profile relates to identifying the right kind of the supplier. Strategic outsourcing has evolved to become a vital component of major organizations. More and more industries have come to realize its potential towards achieving industrial productivity both in terms of costs and the final output.