What is Direct Sourcing?
Direct sourcing is a procurement strategy in which a company sources and procures goods and services directly from suppliers, rather than through intermediaries such as distributors or wholesalers. Benefits of direct sourcing include improved quality, better compliance, cost savings, faster delivery and better supplier relationship.
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.
Direct sourcing also requires organizations to invest in the infrastructure and resources necessary to manage the procurement process, including sourcing, negotiating, purchasing, and managing supplier relationships
