Strategic sourcing is a process that evaluates current and potential sourcing opportunities to assess their long-term value according to business objectives. It formulates action plans for critical supplies. Strategic sourcing is evolving from decentralized local purchasing to global, collaborative processes driven by cross-functional teams using advanced technologies. It focuses on total cost reduction, innovation, and standardization. The strategic sourcing process involves analyzing spend, requirements, the market, developing a strategy, negotiations, contracting, and implementation.