What is the first step in the sourcing process?

The first step in the sourcing process involves identifying the need. This initial phase focuses on recognizing and articulating what is required for the organization to achieve its objectives. Understanding the need lays the groundwork for effective sourcing as it ensures that all activities that follow are directly aligned with fulfilling that need.

Once the need is identified, it can be translated into specific user requirements that guide the sourcing strategy. This approach ensures that the sourcing decisions made later on are purposeful and targeted, ultimately aiding in the selection of the right suppliers and products.

By starting with a clear understanding of the need, organizations can streamline their processes, reduce waste, and enhance overall efficiency in sourcing, contributing to more effective procurement outcomes.