Sourcing is the process of identifying, assessing and selecting suppliers or production options for a business’s requirements.
How it works in retail
Retail sourcing considers product specifications, price, capacity, lead time, reliability and relevant standards. It creates the supplier choices used in purchasing and supply planning.
A retail example
A retailer compares manufacturers capable of producing a private-label knitwear range to the required specifications.
What to keep in mind
The lowest quoted unit price is not always the lowest total cost. Freight, quality, payment terms and supply risk should be evaluated on a comparable basis.
Sources & further reading
Examples are illustrative. Terminology and measurement conventions can vary by business and market.