Strategic sourcing is a systematic approach to procurement that focuses on continuously improving and re-evaluating purchasing activities. It involves analyzing an organization's spending patterns, identifying suppliers, and developing long-term relationships to optimize costs and quality. This method aims to align purchasing strategies with overall business goals. The process typically includes steps such as market research, supplier evaluation, and contract negotiation. By leveraging data and collaboration, organizations can enhance their supply chain efficiency and reduce risks. Strategic sourcing is essential for businesses looking to gain a competitive advantage in today's dynamic market environment.