Question

Write an outline on the role of sourcing in supply chain and add some sources. (APA format)

Answer 1

Today, Sourcing is a critical strategic weapon against competition. It is now needs process integration with Supply Chain Management and in many cases need the highest priority. Sourcing is all about getting right raw materials, components, products, services, or other resources from the right suppliers at the right place and right time to execute the business operations. Correct sourcing can increase the supply chain surplus without significantly increasing risks and increase the net value created in the overall supply chain.

Role and Advantages-

• Cost reduction
• Avoid excess inventory stocks
• Make Supply chain more Agility, Adaptability, Alignment
• Respond to short term changes in demand or supply quickly; handle external disruptions smoothly
• Develop collaborative relations with suppliers
• Build inventory buffers of inexpensive but key components
• Have a dependable logistics partner