Dr. Gary L. Ragatz, Associate Professor of Supply Chain Management, talks about the connection between strategic sourcing and supply base management, and how supply base management is a method used to meet objectives strategic sourcing defines. Dr. Ragatz teaches courses in procurement, operations and supply chain management.
Supply base management and strategic sourcing, I would say intersect. In the strategic sourcing process at some point we’re making some decisions about the kind of supplier that we need in a particular purchase category. Maybe even doing some assessment of potential suppliers who are out there in the supply base. And this is one of the areas where they intersect. The choice of which suppliers we are going to be doing business with.
Supply base management then extends beyond the strategic sourcing process and when we’ve got that supply base established, supply base management is concerned with on an ongoing basis, managing that relationship and managing the performance of the suppliers that are in that supply base in order to achieve the objectives that the strategic sourcing process has laid out.