Traditionally, companies have made sourcing decisions, mostly known as make or buy decisions by focusing on unit cost with insufficient consideration for strategic issues. Firms need better decision making tools for evaluating sourcing decisions-that can overcome the long term strategic issues. This study presents the underlying challenges of purchasing and its role in an organization. It gives an understanding of various aspects that have to be considered while developing a sourcing strategy for particular commodity. It aims to provide different solutions under different circumstances in order to find a strategic fit within the organization; by introducing a case study in high tech product and applying strategic sourcing in this particular case.
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