Sourcing involves activities around identifying and evaluating potential suppliers as well as selecting and engaging with a suitable supplier that offers the best value both in terms of product and cost. The process seems uncomplicated, but supplier sourcing involves a lot of market research to zero in on suppliers who can provide quality goods and services. For a buyer, it requires negotiating contracts to arrive at the best possible price and establishing payment terms with the supplier.
Supplier sourcing, however, doesn’t stop at identifying suppliers and getting the goods and services. It requires managing suppliers through constant evaluation and quality initiatives. With the geopolitical events eroding supply sources at random, managing and mitigating supply risks form a core part of the process.
Good sourcing strategies are therefore indispensable when you want your enterprise’s operations to remain steady and effective.