GlossaryEN1 min readUpdated: Jun 22, 2026

Sourcing

Procurement and supply chain teams rely on sourcing to identify, assess, and select suppliers for goods or services in a structured way.

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Last updated: 22 June 2026Published: 19 June 2025

Source: https://www.investopedia.com/terms/s/sourcing.asp

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Logistics Concept

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Definition & Explanation

Procurement and supply chain teams rely on sourcing to identify, assess, and select suppliers for goods or services in a structured way. The process spans market analysis, competitive tendering, supplier evaluation, and contract negotiation, always balancing cost efficiency, quality standards, and supply resilience. In cross-border trade, sourcing also involves compliance screening and close coordination with logistics planning. It therefore extends well beyond simple purchasing into deliberate supply base management. Sourcing should be distinguished from procurement logistics, which focuses on the physical movement and delivery of goods once the supplier relationship is established.

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