What best describes the process of strategic sourcing?

Strategic sourcing is best understood as a continuous and systematic process aimed at evaluating and optimizing an organization's supplier base to maximize efficiency and value over time. This approach involves ongoing assessments of suppliers' capabilities, performance, and prices, ensuring that the organization can adapt to market changes and leverage best practices in procurement.

The continuous evaluation aspect is crucial, as it allows companies to identify potential areas for improvement in supplier relationships, negotiate better terms, and ensure alignment with changes in the business or market conditions. Strategic sourcing focuses not only on cost savings but also on enhancing quality, delivery times, and innovation through collaborative relationships with suppliers.

Other options do not encapsulate the essence of strategic sourcing. A one-time evaluation does not provide the dynamic adaptation and continuous improvement that characterize strategic sourcing. Increasing purchase prices contradicts the goal of sourcing strategies, which typically aim to optimize costs. Limiting sourcing solely to local suppliers would ignore the potential benefits and efficiencies that could be gained from a broader, more global perspective, which is often vital in today’s interconnected supply chains.