SOURCING DECISION AND IT’S EFFECTS ON MATERIAL AVAILABILITY

ABSTRACT The study is to examine the Sourcing Decision and its effects on material availability. Supplier selection is a procurement planning activity which allows managers to search for and find credible sources of supply that can ensure the availability of materials, equipments, tools, components, projects, consumables, and services at the right price, quantity, at the right time and place. In order to ensure contritely of supply purchasing officers must spend tine and effort in investigating and evaluating prospective sources or suppliers and continuously appraising the performance of current suppliers in order to identify the problem of overstocking, under stocking, or complete non availability of material in the organization. In order to ensure accuracy in supply, uninterrupted flow of materials in and out of the organization, purchasing manager have to decide the kind of product or service that best fit needs, decide whether to buy what they require or of produce (make or buy decision) whether to buy locally, nationally, or internationally, whether to use singly or multiple source of supply, whether to enter into partnership or reciprocity agreement, whether to engage in negotiation or bidding whether to buy from distributors or directly from the manufacturers. A sourcing decision involves strategically selecting the necessary services and products for a company to operate effectively, including choosing suppliers, negotiating contracts, and evaluating supplier performance. This decision is crucial in supply chain management, particularly concerning whether to outsource or perform activities in-house, according to Industrial Procurement.