sourcing business models theory is a systems-based approach to structuring supplier relationships. a sourcing business model is a type of business model that is applied to business relationships where more than one party needs to work with another party to be successful. there are seven sourcing business models that range from the transactional to investment-based. the seven models are: basic provider, approved provider, preferred provider, performance-based/managed services model, vested business model, shared services model, and equity partnership model. sourcing business models are targeted for procurement professionals seeking a modern approach for achieving the best fit between buyers and suppliers. sourcing business model theory is based on a collaborative research effort by the university of tennessee (ut), the sourcing industry group (sig) the center for outsourcing research and education (core), and the international association for contracts and commercial management (iaccm). their initial research formed the basis for the 2015 book, "strategic sourcing in the new economy: harnessing the potential of sourcing business models in modern procurement."