Direct sourcing refers to the practice of a company or organization directly engaging with suppliers, manufacturers, or producers to obtain goods, materials, or services without involving intermediaries such as distributors, wholesalers, or retailers. In other words, direct sourcing involves establishing a direct business relationship between the buyer and the supplier. This approach can have several advantages, including:

However, direct sourcing also comes with its challenges:

Direct sourcing is common in industries where customization, quality control, and cost savings are critical. It requires careful planning, clear communication, and the establishment of mutually beneficial partnerships with suppliers. Companies considering direct sourcing should weigh the benefits against the challenges and assess whether it aligns with their business goals and capabilities.