Sourcing is the process of identifying supply options, evaluating capable suppliers and agreeing the commercial route for a business requirement. It sits within procurement and ends with a documented decision or contract handoff. Sourcing is not merely searching for vendor names.
What are the main sourcing stages?
- Define the requirement, volumes, constraints and decision criteria.
- Analyze the supply market and choose a sourcing strategy.
- Build and qualify a supplier longlist.
- Issue the appropriate RFx and manage clarifications.
- Evaluate commercial, technical, service and risk evidence.
- Negotiate, approve and document the award.
What should a sourcing record contain?
Keep the approved brief, market evidence, supplier list, qualification results, bid versions, evaluation, conflicts, negotiation record and award approval. The record should explain why the selected supplier was suitable, not simply name the winner.
Sourcing vs. procurement
Sourcing focuses on the supply market and supplier-selection decision. Procurement is broader and can include demand management, contracting, purchasing, payment and supplier performance.
When should the process be deeper?
Increase diligence when the requirement has high value, operational dependency, regulatory exposure, complex specifications, constrained supply or expensive switching. Low-risk repeat buys may use an approved catalog or framework rather than a full competition.
