// ROBOTICS AND SMART FACTORIES TERM
Strategic Sourcing
A systematic approach to purchasing that focuses on long-term value, total cost of ownership, and strategic supplier relationships.
TECHNICAL DEFINITION
Strategic sourcing is a comprehensive, data-driven procurement methodology that analyzes an organization's spend and supply markets to identify optimal suppliers, negotiate favorable terms, and establish long-term, value-driven relationships, aiming to reduce total cost of ownership and enhance supply chain resilience.
BACKGROUND
The Fourth Industrial Revolution, also known as 4IR, Industry 4.0 or the Intelligence Age, is a neologism describing rapid technological advancement in the 21st century. It follows the Third Industrial Revolution. The term was popularized in 2016 by Klaus Schwab, the World Economic Forum founder and former executive chairman, who asserts that these developments represent a significant shift in industrial capitalism.
READ MORE ON WIKIPEDIASYNONYMS & ALIASES
- Category Management
- Value-Based Sourcing
- Global Sourcing
USAGE NOTE
Strategic sourcing moves beyond simply finding the lowest price to consider overall value.
DEVELOPERS
Organizations developing technology related to Strategic Sourcing.
SAP Ariba provides cloud-based procurement solutions, including strategic sourcing, spend analysis, supplier management, and contract management, enabling manufacturers to digitize and optimize their sourcing processes for greater efficiency and resilience in line with Industry 5.0 principles.
Coupa offers a comprehensive Business Spend Management (BSM) platform that includes strategic sourcing, e-procurement, and supplier risk management, helping manufacturing companies gain full visibility and control over their expenditures to make more informed and sustainable sourcing decisions.
Jaggaer's Autonomous Commerce platform delivers advanced strategic sourcing capabilities, spend analytics, and supplier management solutions designed to automate and optimize procurement for manufacturers, supporting agile and resilient supply chains critical for Industry 5.0.
GEP provides end-to-end procurement and supply chain strategy, software (SMART by GEP), and managed services, assisting manufacturing clients with strategic sourcing, spend management, and supply chain resilience initiatives, aligning with the data-driven and sustainable goals of Industry 5.0.
Zycus offers AI-powered Source-to-Pay solutions, including advanced strategic sourcing, spend analytics, and supplier lifecycle management, enabling manufacturing organizations to leverage artificial intelligence for smarter, faster, and more effective sourcing decisions.
Oracle's Fusion Cloud SCM suite includes modules for procurement, sourcing, and supplier management, providing manufacturers with integrated tools for strategic sourcing, contract negotiation, and supply chain planning to enhance operational efficiency and adaptability.
E2open operates a multi-enterprise business network platform that supports strategic sourcing through demand sensing, supply collaboration, global trade management, and risk mitigation, helping manufacturers build more resilient and connected supply chains for Industry 5.0.
IBM Sterling Supply Chain solutions offer capabilities for B2B integration, order management, and supply chain visibility, providing manufacturers with the foundational tools needed for effective strategic sourcing, supplier collaboration, and risk management in complex global networks.