Which of the following best explains the process that finds, evaluates, and engages suppliers to provide goods and services to a business?

• A. Sourcing
• B. Procurement
• C. Logistics
• D. Vendor management

Answer: (A)

Finding, evaluating, and engaging suppliers is the sourcing process. It starts with identifying potential suppliers through market research and supplier discovery, then evaluating them on criteria like capability, capacity, quality, cost, delivery reliability, and risk, often using structured steps such as RFIs, RFQs, or RFPs. After selecting the best fit, engaging them involves negotiating terms, signing contracts, and onboarding so they can meet the business needs. This focus on locating and choosing suppliers before actually purchasing goods or services differentiates it from procurement (the buying and administration of orders), logistics (the movement and storage of goods), and vendor management (ongoing performance and relationship handling).