Direct Sourcing - What is its importance

What is Direct Sourcing?

The meaning of the term direct sourcing is the procurement of goods, services, raw materials, and other inputs required for an organisation's major operations. All the inputs purchased through direct sourcing are used in manufacturing the final products that are meant to be sold to the customers.

Many businesses are now integrating direct sourcing software with their current processes to streamline the process of direct sourcing. This helps the organization avail many benefits like lower costs, inventory management, timely payments to vendors, and several others. 

Due to the essential nature of the materials and services for the final products, most organizations have an in-house team to manage the direct source supply functions.