What kind of value does strategic sourcing aim to achieve?

Strategic sourcing aims to achieve a balance of value, cost, and risk by evaluating and integrating various factors in the procurement process. This approach goes beyond simply finding the lowest prices; it seeks to ensure that the organization obtains the best overall value for the products and services it acquires. This includes assessing the total cost of ownership, the quality of supplier relationships, the potential risks associated with different sourcing options, and how these factors contribute to the organization's overall strategic objectives.

By strategically managing supplier relationships and procurement practices, organizations can optimize their supply chain, reduce costs, and mitigate risks associated with supply disruptions or price volatility. The focus on value ensures that decisions are made with a long-term perspective rather than short-term savings, aligning procurement strategies with the overall business goals and enhancing competitiveness in the market.

Other choices do not effectively capture the holistic approach of strategic sourcing. For example, maximizing supplier involvement may improve collaboration but does not inherently address the balance of cost and risk. Minimizing customer service is counterproductive to creating value in supply chains, and increasing product variety does not necessarily relate to the strategic sourcing objective of optimizing procurement outcomes.