What are the two primary types of sourcing?

The correct answer identifies the two primary types of sourcing as strategic and tactical.

Strategic sourcing focuses on long-term goals and building relationships that enhance the overall procurement function, aligning purchasing decisions with the organization's objectives. This approach often involves in-depth market analysis, supplier development, and leveraging negotiations to secure better prices and services over time. It emphasizes value creation and sustainability while considering the broader implications of sourcing decisions on the organization's success.

Tactical sourcing, on the other hand, pertains to short-term actions and day-to-day procurement activities. This can include activities like executing purchase orders, managing supplier performance on an operational level, and reacting to immediate procurement needs. Tactical sourcing is more oriented towards managing current operations and ensuring that the supply chain runs smoothly in the present.

Understanding the distinction between these two types of sourcing is essential for procurement professionals to optimize their strategy in line with organizational objectives while ensuring that immediate needs are met effectively.