Vendor Centric Blog

Sourcing & Procurement - Key Components of Your Vendor Management Program

April 12, 2018

Sourcing and procurement are both important business disciplines that oftentimes get mingled together.  However, both of them are important activities that enable organizations to proactively and responsively address business needs, while concurrently managing costs, risks and compliance.


We recently sat down with Joe Payne, VP of Client Services at Source One Management, to discuss a variety of emerging trends and best practices in procurement and vendor management.  Source One is a consulting firm that focuses on supporting strategic sourcing and procurement for their clients, and Joe is a leading thinker on the topic of procurement transformation.


One of the first topics we discussed was the difference between procurement and sourcing, and why it’s important for successful companies to have a vendor management program that incorporates both.

“Ultimately, the value proposition that sourcing and procurement bring to an organization has more to do with innovation and risk management than simply controlling costs,” said Payne. “Procurement, as it’s traditionally thought of, is no longer just about compliance.  It’s about how you thoughtfully engage with suppliers, in a process-driven way, to create a competitive advantage.”

While procurement and sourcing are oftentimes thought of as a singular function, they are actually quite different and require different skill sets. “Sourcing is more strategic.  It focuses on understanding the business need and the purpose it serves, and then determining the right approach to sourcing that that need,” said Payne.  “Procurement, on the other hand, is more tactical.  It requires following a disciplined approach to developing requirements, managing solicitations and analyzing results to make the most informed decision when selecting a new vendor.”

Organizations need to have both a strong sourcing and procurement function (with the appropriate skill set for each) to address the strategic and tactical issues associated with making the best decision for acquiring goods and services.


Hear more from our conversation with Joe Payne by listening to our podcast titled Strategic Sourcing and Procurement with Joe Payne, Source One Management!




Vendor Centric specializes in helping organizations create and mature the policies, procedures and systems they use to manage their important vendor relationships. Learn more about our Vendor Management Framework and how we can help you implement the right-size vendor management program for your organization.


Please reload

Subscribe to the

Vendor Centric 


Subscribe to the

Vendor Centric 




Rethinking Vendors

Our flagship publication shares our philosophy on power and untapped value of vendor relationships.

The Nonprofit CFO's Guide to Virtual Credit Cards


A step-by-step guide to automating a/p payment processing and creating new streams of revenue.

Subscribe to

Our Podcast

Related Blog Posts

Please reload

Quick Links

Contact Us

9841 Washingtonian Boulevard Suite 200 Gaithersburg, Maryland 20878


(240) 813-1170

Follow Us

  • Vendor Centric Facebook
  • Vendor Centric Twitter
  • Vendor Centric LinkedIn

Subscribe to our newsletter

Subscribe to our

Rethinking Vendors Podcast

Vendor Centric Podcast

Copyright © 2018 Vendor Centric. All rights reserved.