Source of supply refers to the original or main point from which something is obtained or procured, particularly in the context of availability or provision of goods, services, or resources. It is a term commonly used in business and economics to describe the origin or starting point of the production or distribution process.
In the field of procurement, a source of supply can refer to a supplier or vendor that provides the necessary products or materials needed by an organization to carry out its operations. This source can be a company, manufacturer, distributor, or any other entity that has the ability to fulfill the requirements of the buyer.
The concept of a source of supply is essential in managing and ensuring an uninterrupted flow of goods and services. It involves identifying and establishing relationships with reliable and dependable suppliers who can consistently meet the demands of the organization. This includes considering factors such as quality, cost, reliability, and timeliness of supply.
Additionally, a source of supply can also encompass non-tangible resources such as information, knowledge, or expertise. For example, in academic research, scholars may refer to a book or article as a source of supply of relevant information for their study.
Overall, a source of supply is a fundamental element in supply chain management, production planning, and decision-making processes, as it pertains to the pivotal starting point from which goods, services, or resources are acquired.
