What is sourcing in supply-chain management?

We use sourcing and procurement interchangeably. Supply Chain Management includes the entire process from identifying a customer requirement to delivery of that customer part on time, every time, of the quality that they require.

Sourcing or Procurement is a piece of Supply Chain Management and is primarily dedicated to identifying the right factory source that can make the product to the customer’s specifications. Once the right vendor is “sourced”, Mechanical Power “procures” the product for the customer.