THE IMPACT OF SOURCING AS A SUPPLY CHAIN FUNCTION ON THE PROFITABILITY OF A COMPANY

THE IMPACT OF SOURCING AS A SUPPLY CHAIN FUNCTION ON THE PROFITABILITY OF A COMPANY

ABSTRACT

A visit to most production company as shows that sourcing now have a great impact on the profitability of a company. Such as lowering cost structures, maintaining the product quality of a company, ability to meet customer requirements, and lot of other benefits.

This study attempts to evaluate the impact of sourcing in the profitability of company using ZARTECHLIMITED as a case study. It seeks to examine the responses of the procurement department on how suppliers are selected during the process of procurement of materials, which will eventually help to increase the company’s profit.

This study drew literature on sourcing strategies and its benefits from several sources. Data were gathered from Zartechlimited and also from other sources like internet, text books, journal e.tc. Results of analysis of the data collected show that the company contacted are convinced that sourcing is a necessity for the profitability of any company however they agreed that sourcing strategies should be effectively carried out. Other facts were elucidated by the study but generalization of the study findings cannot be total, due to certain limitations.

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