The aim of strategic sourcing is to achieve large and sustainable cost reductions, long-term supply stability and minimization of supply risk. The purpose of this paper is to critically analyze the role of strategic sourcing on procurement performance in public institutions in Kenya. It has been noted that there is ineffective and non-reliable procurement procedures in public sector in Kenya, this can be attributed by the fact the there is no strategic considerations. This paper will focus on the following concepts supply management, role of IT, outsourcing and multiple sourcing strategies on procurement functions. It involved conducting a systematic review of literature papers in the field of strategic sourcing and procurement by means of content analysis to draw conclusion and recommendations. In conclusion, strategic sourcing increases an organization’s buying power to maximize the leverage it has with suppliers for the purposes of reducing cost, enhancing quality and improving supplier diversity.
Keywords: Cost Reduction, Performance, Public Procurement, Strategic Sourcing, Sustainable
