Supplier Scoring is used to rate Supplier performance. Impact on Supply Chain surplus and the total cost is the basis of comparison between suppliers. If the sourcing process is effective it improves profits for the firm and the total supply chain in various ways. A firm may like to keep a supply chain function in the house if outsourcing increases the third-party power significantly. Firms often like to keep the supply chain function in the house, if there is a chance of leakage of intellectual property or other sensitive information, especially when the third party also serves the competitors also. Since the late 1990s, the trend of outsourcing a greater range of supply chain functions has been growing. With more globalization of business customers are looking for players, who can manage virtually all aspects of their Supply Chain, which is being called 4PL. A 4PL is an integrator, who assembles the supply chain resources, capability, and technical areas of its own and other organizations to design, build and run comprehensive supply chain solutions.
Keywords: Supplier, 3PL,4PL, Sourcing, Supply Chain Management etc.
Sourcing is the whole set of business processes, which is necessary to buy goods and services required by the Supply Chain. The most important decision for a supply chain function is whether it is feasible to outsource or perform the function in-house. When a Supply Chain Function is outsourced, then, it is performed by a third-party Supply Chain Management Service Provider. After checking pertinent issues of increase in Supply Chain surplus and risk factors associated with involving and engaging a third party, a sourcing decision is made to perform the function by a third party rather than perform the function in-house.