Inverted Sourcing

Inverted Sourcing is a price volatility reduction procurement strategy usually conducted by procurement or supply-chain person by which the value of an organization's waste-stream is maximized by actively seeking out the highest price possible from a range of potential buyers, exploiting price trends and other market factors. This technique is used by organizations as a source of alternative income generation, and also as an offset to reduce the net impact of front-end acquisition pricing, thereby reducing exposure to price volatility for a given sourcing category.