sourcing


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Sourcing

In private equity, a slang term for cold calling potential clients.

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 ?
The company said that over a 100 Private Sourcing events are planned for 2010, with dozens of buyers including Carrefour, Li & Fung, Staples and Tesco scheduled to participate.
Several states that are contemplating membership in SST--most notably Texas, Illinois and California--apply origin-based sourcing for intrastate sales.
Fortunately, the Department of Defense was already well under way on the strategic sourcing voyage when the OMB memorandum was released.
* Insufficient systems infrastructures: More than 80 percent of mid-market enterprises use a hodgepodge of homegrown sourcing automation "solutions" and offline communications to facilitate negotiations and manage sourcing projects.
[sections] 1.863-8 provides exclusive sourcing rules for SPOCI; other source rules are implicated only to the extent that a material portion of an activity is not space or ocean activity.
The company said that 22 sourcing teams, representing 12 global buyers with total annual revenues of over USD300bn, joined Private Sourcing Events in March 2010 to meet face-to-face with over 75 verified and pre-screened suppliers.
One difficulty lies with the sourcing of international communications income under section 863(e)(2) of the Code.
Section 865 generally bases the sourcing of gains from sales of personal property, including stock, on the taxpayer's residence.
The retroactive application of the proposed regulations (which confirm the propriety of sourcing such deductions to the United States) would obviate any disputes between taxpayers and IRS examining agents over the meaning of the term
Observation: These cases are good news for corporate taxpayers wishing to use the 50/50 split method under example 2 of the income sourcing regulations.
An article in the April 2003 issue (1) described how present interpretations of the sourcing rules to conventional commerce should be applied to e-commerce transactions.