Strategic Sourcing: Expenditure Category Strategy Formulation
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Each procure input has a different strategic implication to the company; hence it requires a different strategic approach in procuring these individual inputs. When developing an appropriate approach management must first, gaging the criticality of the input as well as the complexity of the supply market. Second, it must identify levers for achieving the success of procuring the inputs. Third, it must choose most appropriate strategic sourcing options, ranging from outsourcing to insourcing. This chapter presents the framework for formulating procurement strategy for each expenditure category.