Corporate sourcing
Encyclopedia
Corporate sourcing refers to a system where divisions of companies coordinate the procurement
and distribution of materials, parts, equipment, and supplies for the organization. This is a supply chain
, purchasing
/procurement
, and inventory
function. This enables bulk discounting, auditing, and Sarbanes-Oxley compliance
.
Duties of a corporate sourcing agent include:
Procurement
Procurement is the acquisition of goods or services. It is favourable that the goods/services are appropriate and that they are procured at the best possible cost to meet the needs of the purchaser in terms of quality and quantity, time, and location...
and distribution of materials, parts, equipment, and supplies for the organization. This is a supply chain
Supply chain
A supply chain is a system of organizations, people, technology, activities, information and resources involved in moving a product or service from supplier to customer. Supply chain activities transform natural resources, raw materials and components into a finished product that is delivered to...
, purchasing
Purchasing
Purchasing refers to a business or organization attempting for acquiring goods or services to accomplish the goals of the enterprise. Though there are several organizations that attempt to set standards in the purchasing process, processes can vary greatly between organizations...
/procurement
Procurement
Procurement is the acquisition of goods or services. It is favourable that the goods/services are appropriate and that they are procured at the best possible cost to meet the needs of the purchaser in terms of quality and quantity, time, and location...
, and inventory
Inventory
Inventory means a list compiled for some formal purpose, such as the details of an estate going to probate, or the contents of a house let furnished. This remains the prime meaning in British English...
function. This enables bulk discounting, auditing, and Sarbanes-Oxley compliance
Sarbanes-Oxley Act
The Sarbanes–Oxley Act of 2002 , also known as the 'Public Company Accounting Reform and Investor Protection Act' and 'Corporate and Auditing Accountability and Responsibility Act' and commonly called Sarbanes–Oxley, Sarbox or SOX, is a United States federal law enacted on July 30, 2002, which...
.
Duties of a corporate sourcing agent include:
- coordinating all activities related to procurementProcurementProcurement is the acquisition of goods or services. It is favourable that the goods/services are appropriate and that they are procured at the best possible cost to meet the needs of the purchaser in terms of quality and quantity, time, and location...
of a commodityCommodityIn economics, a commodity is the generic term for any marketable item produced to satisfy wants or needs. Economic commodities comprise goods and services....
beginning with intent to purchase through delivery. - analyzing the requirements of the commodity, including preliminary specifications, preferred supplier, and date commodity is needed.
- soliciting and evaluating proposals for the requested commodity. Investigating and/or interviewing potential suppliers to determine if they meet the specified requirements.