Sourcing Business Model theory first emerged in 2011 when researchers at the University of Tennessee suggested that sourcing should be thought of as a “system” that created a “business model” between the buyer and supplier. In 2015, researchers released the book Strategic Sourcing in the New Economy: Harnessing the Potential of Sourcing Business Models for Modern Procurement detailing seven sourcing business models and how to craft them. The book has been widely endorsed and is now being adopted as “the gold standard” for teaching category segmentation by the Sourcing Industry Group and NEVI, the Dutch Association for Procurement. This session will provide an overview of Sourcing Business Model Theory—including the why and what. The session can be combined with a detailed RealPlay® session—Sourcing Business Models in Practice.