Direct Source Supply Definition

In business, a direct source supply is a company or individual that provides goods or services to another company without going through any middlemen. This type of arrangement is usually made between two companies that have a close working relationship.

The main advantage of having a direct source supply is that it can help to reduce costs. This is because the company does not have to pay any commission or fees to middlemen. In addition, it can also lead to quicker turnaround times as there are no delays in communication or coordination.

However, there are also some disadvantages to having a direct source supply. One of these is that the company may be less flexible in terms of negotiation and may have to accept the terms and conditions set by the supplier. Another downside is that the company may be more reliant on the supplier and may find it difficult to switch to another supplier if there are problems with the service or quality of products.