Supplier sourcing strategies in the purchasing department, Operation Management

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Q. What are the Supplier sourcing strategies in the purchasing department?

Supplier sourcing strategies: It is the responsibility of the purchasing department:

a. Single sourcing as an example, the organisation sources an exact material, component or service through one supplier only.

b. Multiple sourcing as an example the organisation sources an exact material, component or service from various suppliers concurrently.

c. Delegated sourcing as an example the organisation outsources purchasing decisions to another third party or say external organisation, business process outsourcing (BPO).

d. Parallel sourcing as an example the organisation uses a combination of two or further of the above typologies.


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