Sourcing financial definition of sourcing
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sourcing the selection by a firm of its sources of supply – raw materials and components in the case of a manufacturer, final products in the case of a retailer. Strategically, a firm may chose to buy in a particular input (or product) from an outside supplier (OUTSOURCING), or produce it for itself as part of a vertically integrated operation (see VERTICAL INTEGRATION, MAKE-OR-BUY DECISION). In the former case, a firm may choose to favour one or a number of suppliers, both domestic and overseas-based, depending on various cost and risk considerations. For example, relying on a single supplier may allow the firm to benefit from discounts given on bulk purchases, but on the other hand may expose the firm to great risk of supply disruptions. For this reason multiple-supplier locations may be preferred, especially in the case of MULTINATIONAL ENTERPRISES which may deploy global sourcing strategies to take advantage of differences in supply costs between countries and obtain access to new component technologies and products. See LOCAL CONTENT RULE, JUST-IN-TIME (JIT) SYSTEM, INTERNATIONALIZATION, PURCHASING SUPPLIER DEVELOPMENT.
sourcing the selection by a firm of its sources of supply - raw materials and components in the case of a manufacturer, final products in the case of a retailer. A firm may choose to buy in a particular input (or product) from an outside supplier or to produce it for itself as part of a vertically integrated operation. See OUTSOURCING and VERTICAL INTEGRATION for further discussion.
References in periodicals archive
Several states that are contemplating membership in SST--most notably Texas, Illinois and California--apply origin-based sourcing
for intrastate sales.
These are common to both SPOCI and ICI sourcing
because they also generally apply to ICI sourcing
Consequently, the first step in sourcing
retail e-commerce (e-tailing) income is to identity its character as service, royalty or sales income.
The bill accomplishes this result by providing definitive rules that are consistent with the treatment of foreign currency as personal property and the amendments to the sourcing
rules in section 611 of the bill [which includes section 865].