Sourcing refers to the process of identifying and selecting suppliers or vendors to provide goods or services for a business. This involves evaluating potential sources based on factors like quality, cost, reliability, and delivery time. Effective sourcing helps companies maintain a steady supply of materials while optimizing their expenses. In addition to finding suppliers, sourcing can also involve negotiating contracts and establishing relationships with them. Businesses often use various strategies, such as global sourcing or local sourcing, to meet their specific needs and enhance their competitive advantage in the market.