Sourcing has become an increasingly important component in the POM area. Many companies now accord sourcing a separate status like any other functional area Sourcing tactics provide guidelines about questions such as, Are the Cost advantages of using only a few suppliers outweighed by the risk of over dependence?
What criteria (e.g., payment require ments) should be used in selecting vendors? Which vendors can provide "just-in-time” inventory, and how can the business provide it to our customers? How can operations be supported by the volume and delivery requirements of purchases?