Introduction
With the increase of on line buying and sourcing of goods and services, educators, consultants, writers, and industry leaders have spent a great deal of time and resources attempting to improve the identification and selection of suppliers and the associated purchasing processes. Today, some of the most commonly heard terms for buying include: Sourcing, Strategic Sourcing, e-Sourcing, Purchasing, Procurement, e-Procurement, Supplier Management, Supplier Relationship Management, and Supply Base Management.
The outsourcing decisions are with regard to whether product should be made internally or whether they should be bought externally. Making the product internally gives better control over the supply where as buying option gives the opportunity to get specialist service probably with economies of scale. Current global outsourcing is based on this thinking.