When it comes to business, the terms “direct sourcing” and “indirect sourcing” are often used to describe the different ways of obtaining goods and services. Direct sourcing is the process of procuring goods and services directly from the source, usually a supplier or manufacturer. This type of sourcing typically involves negotiating a contract with the supplier or manufacturer and then placing orders with them. The advantage of direct sourcing is that it allows businesses to control the quality of the goods and services they receive, as well as the price they pay for them.
Indirect sourcing, on the other hand, is the process of obtaining goods and services from third-party sources. This could include wholesalers, distributors, or other resellers. Indirect sourcing allows businesses to access a wider range of goods and services at a lower cost, but it also carries the risk of decreased quality control. Businesses must be sure to do their due diligence when selecting a third-party source to ensure they are getting the best quality product at the best price.
