Logistic sourcing requires a strategic approach, strong relationships with Logistic service providers, the use of technology, regular monitoring and optimization of logistic performance, and compliance with regulatory requirements. By implementing these strategies, supply chain leaders can improve the efficiency and effectiveness of their logistic operations, reduce costs, and ensure the timely delivery of goods to their customers.

1. Logistic Sourcing: Overcoming Procurement
Challenges for Supply Chain Leaders
Table of Content
1. What is logistic sourcing?
2. Supply Chain as a Service (SCaaS) for sourcing
3. How to Sourcing?
4. Challenges in Logistic Sourcing
5. Bottom line

2. 1. What is logistic sourcing?
Logistic Sourcing is the sourcing of goods and services to ensure the availability of goods and
services at optimal times and in optimal quantities to meet customer orders. Typically, the
supplier of a service is the company that manufactures or produces it or the company that
supplies the service. Because products are made or sold by different companies, sourcing is the
process of identifying who will provide what product and where the goods will be produced. The
idea of sourcing is to get the best deal possible by sourcing from suppliers with whom you have
good relationships. If someone buys your product and you can’t supply the product because of a
supplier relationship, you have a choice: you can either wait until the suppliers run out of the
products you make, or you can find a new supplier. According to the Best Logistic Company In
India, there are certain factors that go into the selection of a supplier: price, delivery
requirements, timeliness, security, and relationship.
2. Supply Chain as a Service (SCaaS) for sourcing
SCaaS for sourcing is a new concept that is shaking the supply chain world. With the
introduction of the concept of “sourcing as a service” (SaaS), a wide range of supply chain
functions can be outsourced. One of the most expensive functions of all is sourcing. When a
company outsources supply chain functions, it first engages a SaaS provider. The engagement
process could take the form of an employee referral program, or it could be through an online
portal. After engaging the SaaS provider, the company must decide how the functions will be
outsourced. There are a variety of options, including the use of APIs, buying systems, and
ERP/MRP systems. After the functions are outsourced, the company retains ownership of the
original products and their associated data.
3. How to Sourcing?
There are many factors that go into the decision to source from a vendor or not. Some examples
of these factors are price, delivery requirements, timeliness, security, and relationship. Try to
think of other factors that may play into your decision as well. Choosing the right vendor: Find
the vendor with the best reputation. Ask yourself: Do I know this vendor well? What are their
strengths and weaknesses? Making sure you get it right the first time: All suppliers have their
own specialized processes for the purchase, production, and delivery of products. Make sure you
engage with the right supplier for your products. Finding your sweet spot: Once you find the
right vendor for you, you’ll want to focus on their strengths. Ask yourself: What problems does
this vendor solve for me? What is their primary objective?

3. 4. Challenges in Logistic Sourcing
As supply chains become more complex, the challenge for logistic and procurement leaders has
grown. The following are some of the more common challenges in logistic sourcing. Rising
costs: As the demand for products increases, so does the cost of purchasing raw materials. It’s
not unusual for this cost to go up by 10-15%. Inability to predict demand: Downtime, fraud, and
threats can unpredictably cause a supply chain disruption. Lack of transparency: There is no
centralized source of information for all of the parties in the supply chain. Data is instead
generated and captured at various points within the chain. This data is then fragmented and
dispersed among the parties.
5. Bottom line
As the demand for products continues to grow, so too will the need for more advanced supply
chain functionality. Logistic Sourcing is a critical function that will help a company respond
more quickly to customer orders. However, as with any new function, businesses will initially
find it challenging to function without the support of a SaaS provider. While it may seem like
there’s never a shortage of supply chain partners, in reality, there are only a few vendors with
significant scale and expertise in the field of logistic sourcing. As a result, when a company
engages with a SaaS provider, it not only engages with a vendor with whom it has good
relationships, it also acquires valuable insight into the supply chain processes of other companies
in the sector.