Sourcing for supplier is of paramount important to business organization. Therefore selection of supplier or sources of supply should be handle with great care.
This is so because wrong choice or bad supplier can ruin firm’s operations failure to deliver or late delivery of materials by the suppliers can ruin firms operation. Failure may lead to production stoppage or uneconomical urgent order both which may have negative effects on manufacturing firms operations.
The importance of sources selecting to business organizations has called for proper sourcing policy which will assured material availability without materials there would be nothing to convert to finished products at the same time it is desirable to reduce the cost of the materials in order to optimize the use of working capital the major objective of sourcing is to search who can best supply goods or service required satisfactory it also stretches to cover the supplier’s