Question
The sourcing process usually includes __ 1. evaluation and selection of suppliers 2. selection of suppliers only 3. determination of order sizes placed with selected suppliers 4. determination of the expected demand for the products concerned evaluation and selection of suppliers selection of suppliers only determination of the expected demand for the products concerned
Answer
4.4
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Jena
Professional · Tutor for 6 years
Answer
1. evaluation and selection of suppliers
Explanation
The sourcing process is a crucial component in supply chain management. It plays a pivotal role in identifying, assessing, and establishing deals with suppliers for the required goods or services. Actually, the sourcing process is complicated and wraps more than mere supplier selection, it primarily includes:1. **Evaluation and selection of suppliers**: This is an important step to ensure the business collaborates with competent suppliers who can deliver the products/services that meet their requirements like the desired degree of quality, schedule, cost etc.2. **Selection of suppliers only**: Partially correct but insufficient. The sourcing process does not halt with supplier selection, as it also includes evaluation, ongoing supplier management and further business improvement.3. **Determination of order sizes placed with selected suppliers**: Although this period involves choosing quantities based on inventory policies, agility to market trends etc, this mostly mitigates to the next step after choosing a supplier, removing it from the sourcing process's preliminary phase.4. **Determination of the expected demand for the products concerned**: This role belongs to demand management, usually executed before the sourcing process commences. To competently evaluate supplier aspect, organizations must already haveables like metric of required supply in clear conscience.Whilst all these factors contribute to proficient supply-chain and vendor management, only steps adheres most towards 'completing/covering' the actual sourcing process. Hence, steps covered under the sourcing process usually includes,