The purpose of this study is to examine effect of strategic sourcing on organizationalrnperformance, identify the gap, and to recommend improvement areas in the case of MOHA SoftrnDrinks Industry SC. In this study strategic sourcing is evaluated by supplier development, longrnterm supplier relationship, effective procurement plan, and communication. Both descriptivernand explanatory research design is employed. Primary data was collected from employees ofrnMOHA Soft Drinks Industry SC. through structured questionnaires. Out of a total of 102rnquestionnaires distributed, only 87 (85.2%) complete responses were returned. Data werernanalyzed through descriptive statistical and inferential analysis methods. Employees of MOHArnSoft Drinks Industry SC have agreed with supplier development, long term supplierrnrelationship, effective procurement plan, and communication aspects of Strategic Sourcingrnpractices of the company. From moderate to strong positive and significantrncorrelation/relationship is observed between strategic sourcing and organizationalrnperformance. The multiple regression analysis results indicated that, unlike long term supplierrnrelationship, the three strategic sourcing dimensions (supplier development, effectivernprocurement plan, and communication) have positive and significant effect on organizationalrnperformance. Furthermore, 67.8% change in organizational performance is explained by thosernsignificant strategic sourcing dimensions. Finally, the study recommended MOHA Soft DrinksrnIndustry SC has to reassess its long term supplier relationship and is suggested to improve itsrnrelationship with suppliers from simply buy-sale relationship to a modern supply chainrnrelationship through establishing strategic or long term supplier relationship and continuousrninformation sharing in order to minimize supply uncertainty which resulted in demand andrnsupply mismatch