Sourcing is the process of vetting, selecting, and managing suppliers who can provide the inputs an organization needs for day-to-day running. Sourcing is tasked with carrying out research, creating and executing strategy, defining quality and quantity metrics, and choosing suppliers that meet these criteria.
By doing so, sourcing maintains our company’s supply chain and guarantees that we always have access to the tools it needs to deliver on its objectives. As the name implies, sourcing is concerned with creating sources through which the supplies an organization needs can flow through, while procurement is primarily concerned with procuring these supplies that’ll be used for the organization’s day-to-day running.