217k views
0 votes
Strategic sourcing involves forming a short-term relationship with another company and then setting prices through negotiation.

a. True
b. False

User Johny
by
6.3k points

1 Answer

5 votes

Final answer:

Strategic sourcing generally means forming long-term relationships with suppliers rather than short-term ones; the statement is false.

Step-by-step explanation:

Strategic sourcing typically involves forming long-term relationships with suppliers to leverage detailed understanding of the company's needs and suppliers' capabilities to set prices and achieve sustained value. Therefore, the notion that strategic sourcing involves forming a short-term relationship is false. Moreover, while negotiation is a part of the process, strategic sourcing is also about building relationships that will bring about value beyond just pricing, like quality improvement, innovation, and supply chain efficiency.

User Stif
by
8.0k points