Sourcing is the process of identifying, selecting and developing suppliers. Sourcing is the process involved in identifying potential vendors, conducting negotiations with them and then signing purchasing agreements with them to provide goods or services that meet your company needs. Sourcing refers to those decisions determining how components will be supplied for production and which production units will serve which particular markets.
Sources of Supplier Information
Sources of information relating to potential suppliers encompass:
- Catalogue: This is a booklet containing details of items for sale by the supplier. They contain valuable technical information and format of presentation is simple.
- Trade directories: These contain new product requirements, special/occasional requirements and emergency items.
- Yellow pages: Entail a classified telephone directory, often printed on yellow pages that list subscribers by business or service provided.
- Trade Journals: This is a periodical containing new development, discussions etc concerning a trade profession.
- Business advisors: Local business support organizations such as chambers of commerce or Enterprise Agencies often point out prospective suppliers to deal with.
- Professional peers: This entail informal exchange of information between buyers.
- Informational provided by prospective suppliers