Sourcing Supply Chain Definition
A sourcing supply chain is a network of suppliers, manufacturers, distributors, and other partners that are involved in the creation and delivery of a product or service. The term ‘sourcing’ refers to the process of identifying and selecting suppliers, while ‘supply chain’ refers to the entire system of materials, components, and finished products that flow from supplier to customer.
A company’s sourcing strategy will be based on a number of factors, including the type of product or service being sourced, the company’s own capabilities and resources, and the market conditions for the product or service. The goal of any sourcing strategy is to find the best possible combination of quality, cost, delivery, and other factors that meet the company’s needs.
There are several different models that can be used to organize a sourcing supply chain. The most common model is the linear model, in which each link in the chain is responsible for passing along goods or materials to the next link in line until they reach the final customer. This model is simple and easy to manage, but it can be inflexible if there are changes in demand or supply along the way.
Another common model is the hub-and-spoke model, in which there is one central hub (usually the manufacturer) with a number of spoke suppliers connected to it. This model allows for more flexibility than the linear model because it allows for multiple sources for each component or good. However, it can be more difficult
