Procurement · Odoo glossary
Strategic Sourcing
Strategic sourcing is a structured, long-term approach to choosing supply arrangements that meet business needs and deliver value across the total cost of ownership.
Definition
In general ERP practice
Strategic sourcing is a structured, long-term approach to choosing supply arrangements that meet business needs and deliver value across the total cost of ownership.
It considers supply-market conditions, supplier capability, risk, quality and ongoing cost alongside purchase price. Supplier selection follows an agreed sourcing strategy rather than price comparison alone.
In Odoo
In an Odoo project, purchasing history, supplier lead times, quotations and commercial terms can support sourcing decisions. Define any additional qualification criteria and approval evidence required for a sourcing event.
Practical example
A cheaper component can create higher transport, inspection or failure costs. Compare the full supply arrangement and its operational consequences before selecting the supplier.
References and further reading
Primary references for the concept and its implementation context.
Related glossary terms
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