10. Sourcing and Supply Management
All organizations purchase goods and services; however, this task is not as simple as it appears. The importance of sourcing cannot be overstated. Sourcing and supply management are vitally important for organizational success and competiveness. Sourcing decisions are both strategic and operational. Each has financial, environmental, and social consequences. Further, sourcing decisions directly impact company revenues and costs, in addition to exposing it to risk factors.
Sourcing and supply strategies, policies, and processes should be extended and be in alignment with the corporation’s mission, objectives, and competitive advantage (Figure 10.1).
Since companies ...