There are several approaches to sourcing, each with its own advantages and disadvantages:
Single Sourcing: Procuring from one supplier, which can lead to strong relationships and better pricing but increases risk. Multiple Sourcing: Engaging multiple suppliers to reduce risk and encourage competition, though it may increase management complexity. Global Sourcing: Sourcing from international suppliers to access a broader market and potentially lower costs, but involves dealing with foreign regulations and longer lead times. Outsourcing: Contracting out certain business functions, often to reduce costs and focus on core activities. Insourcing: Bringing certain functions in-house to maintain control and quality.