Strategic sourcing involves a systematic and structured approach to procurement that goes beyond traditional purchasing. It focuses on analyzing the entire supply chain and identifying opportunities to optimize costs, improve quality, and enhance supplier relationships. Key components typically include thorough market research, supplier evaluation, and negotiation to secure favorable terms and conditions. By aligning sourcing strategies with business goals and leveraging market intelligence, organizations can achieve greater efficiency, reduce risks, and drive innovation. Strategic sourcing also emphasizes long-term partnerships with suppliers, fostering collaboration and continuous improvement to sustain competitive advantage in the market. Overall, it aims to maximize value creation throughout the procurement process while adapting to changing market conditions and business needs.