Building the Strategy

Building the Strategy

The fourth step comprises constructing the sourcing strategy. The merger of the first three steps supports the necessary elements for the sourcing strategy. For every region or category, the strategy depends on answering the questions given below.
• How willing is the marketplace to oppose the supplier?
• How supportive are the clients of a firm for testing incumbent supplier relationships?
• What are the substitutes to the competitive assessment?
Generally, these substitutes are opted when a purchasing firm has little leverage over its supply base. They will depend on the belief that the suppliers will share the profits of a new strategy. Thus, we say that the sourcing strategy is an accumulation of all the drivers thus far mentioned.