When a firm "sources strategically," it is
A) working together with customers and suppliers in a creative, positive way.
B) seeking least cost vendors.
C) matching product and raw material flows to minimize transportation costs.
D) reacting to current competitive situations.

Question

Quizplus · Accepted Answer

Sourcing strategically means working collaboratively with both customers and suppliers to create a mutually beneficial relationship that enhances the value of goods and services. This can include aligning business strategies, sharing risks and rewards, and creating a cooperative, positive environment. It is not just about seeking the lowest cost vendors, minimizing transportation costs, or reacting to current competitive situations. Strategic sourcing is about creating long-term, sustainable partnerships that benefit all parties involved.

When a Firm "Sources Strategically," It Is