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Article: An analysis of the integration of strategic sourcing and negotiation planning.
- Article from:
- Journal of Supply Chain Management
- Article date:
- September 22, 2003
- Author:
CopyrightCOPYRIGHT 2003 National Association of Purchasing Management, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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INTRODUCTION
To ensure the purchasing function is aligned with the organization's long-term goals, many organizations have transitioned from tactical buying to strategic sourcing. Tactical buying focuses on the basic transactions needed to acquire the organization's raw material and service requirements. Strategic sourcing is a systematic and comprehensive process of acquiring inputs as well as managing supplier relations in a manner that achieves value in obtaining the organization's long-term objectives. The literature indicates that negotiation should be an essential element in tactical buying as well as strategic sourcing; however, the extent to which ...