Definition of Sourcing
Sourcing is the location, acquisition and management of all the vital inputs required for an organization to operate. This includes raw materials, component parts, products, spares, labour in all forms, locations and services. Sourcing is therefore a key function of any business enterprise or organization and while successful sourcing does not necessarily translate to a successful business, unsuccessful sourcing almost always translates into a failed enterprise. A key to understand sourcing is that whether it is: a product or service; purchased in small lots or large quantities; pick up by a staff member from a local store during lunch hour or send along a 10,000 mile supply chain; acquire domestically or from a foreign supplier, it is sourcing. What is Sourced? If an organization spends money on it, it is sourcing. What is sourced includes, raw materials, component parts, intermediate products, supplies, tools, machinery, equipment, motor vehicles, energy, productio...