<P> Strategic sourcing is an institutional procurement process that continuously improves and re-evaluates the purchasing activities of a company . In the services industry, strategic sourcing refers to a service solution, sometimes called a strategic partnership, which is specifically customized to meet the client's individual needs . In a production environment, it is often considered one component of supply chain management . Modern supply chain management professionals have placed emphasis on defining the distinct differences between strategic sourcing and procurement . Procurement operations support tactical day - to - day transactions such as issuing Purchase Orders to suppliers, whereas strategic sourcing represents to strategic planning, supplier development, contract negotiation, supply chain infrastructure, and outsourcing models . </P> <P> The term "strategic sourcing" was popularized through work with a variety of blue chip companies by a number of consulting firms in the late 1980s and early to mid 1990s . This methodology has become the norm for procurement departments in large, sophisticated companies such as fortune 500 companies . </P>

What does a director of strategic sourcing do