What process examines both internal and external elements to determine sourcing strategies?

The process that examines both internal and external elements to determine sourcing strategies is market research. This method involves gathering and analyzing data regarding market conditions, competitor activity, customer preferences, and industry trends, as well as examining the organization's internal capabilities, goals, and strategies. By integrating insights from both internal and external sources, market research helps organizations identify the best sourcing strategies that align with their objectives and market demands.

Market research provides a comprehensive overview necessary for strategic decision-making, ensuring that sourcing options are not only viable but also competitive. It helps organizations to identify potential suppliers, evaluate their offerings, and understand market dynamics, allowing for informed decisions that enhance overall procurement strategies.

The other processes listed, such as negotiation, request for quotations, and single-source negotiation, focus more on specific stages of the procurement process rather than conducting a holistic examination of both internal and external factors. They are important for executing sourcing strategies but do not encompass the broad analysis that market research entails, which is essential for laying the groundwork for successful sourcing strategies.