SCLCI's Early Editions: Sourcing Methods
Understand Sourcing. A non-exhaustive list of various methods for procurement and when to employ them for maximum benefit..
Sourcing Methods
How to Choose the Best Sourcing Method for Your Business
Sourcing is the process of finding and selecting suppliers that provide the goods or services to meet a business requirement. Sourcing is a crucial part of procurement which will affect the quality, total cost, and delivery, of a company’s products and services.
There are many factors to consider, such as the complexity of project requirements, availability or capacity of established suppliers, market factors such as demand for a specific suppliers goods or services, and any of the risks involved with engaging a supplier.
It is imperative that purchasing managers understand common sourcing methods, that they know the advantages and disadvantages inherent in the use of each method, and that they can identify when a particular sourcing method or methods are appropriate to use for various scenarios.
