What is the first step in the 7-step sourcing process?

The first step in the 7-step sourcing process is to profile the category. This stage involves gathering detailed information about the specific category of goods or services that an organization is looking to source. Profiling the category is essential as it helps procurement professionals identify the market characteristics, understand the spend context, and determine the appropriate sourcing strategy.

In this initial phase, procurement teams analyze historical spend data, identify the key requirements of the category, and assess the internal needs and external market conditions. This foundational understanding guides the subsequent steps in the sourcing process, ensuring that decisions are made based on relevant data and insights.

By starting with category profiling, organizations can align their sourcing strategies with business objectives and market realities, paving the way for effective supplier engagement and negotiation later in the process. This methodical approach ensures that all sourcing decisions are well-informed and strategically sound.