Impact sourcing is a type of procurement that focuses on sourcing goods and services from suppliers that have a positive social or environmental impact. Impact sourcing is often used by companies that want to support suppliers that are working to improve their communities or the environment.
What companies use impact sourcing?
There are many companies that use impact sourcing, but some of the most notable ones include Google, Microsoft, and Amazon. All three of these companies have made a commitment to using impact sourcing in their supply chains, and they have all implemented programs to support this goal.
Google was one of the first companies to adopt impact sourcing, and they have been a leader in the space ever since. The company has a dedicated team of sourcing managers who work with suppliers to ensure that they are meeting Google's standards for social and environmental responsibility. In addition, Google has developed a set of tools and resources that suppliers can use to improve their own impact sourcing practices.
Microsoft is another major company that is using impact sourcing. The company has implemented a number of programs to support suppliers in their efforts to source responsibly. For example, Microsoft offers training and resources on responsible sourcing practices, and they also provide financial incentives to suppliers who meet their standards.
Amazon is the third major company that is using impact sourcing. The company has a team of responsible sourcing experts who work with suppliers to help them improve their practices. In addition, Amazon offers financial incentives to suppliers who meet their standards for social and environmental responsibility.
Why is Impact Sourcing important?
Organizations that engage in impact sourcing not only procure goods and services from companies that create social and economic opportunity for marginalized groups, but also seek to measurably improve the lives of those workers and their families. Impact sourcing is an important part of the global effort to reduce poverty and create a more inclusive economy.
There are many reasons why impact sourcing is important. First, it creates economic opportunities for groups that are often left out of the formal economy, such as women, youth, and the rural poor. Second, it helps to reduce poverty by providing good jobs and incomes to workers who would otherwise be living in poverty. Third, it creates social and economic inclusion by giving marginalized groups a chance to participate in the formal economy. Fourth, it helps to build more resilient communities by diversifying incomes and creating opportunities for people to escape poverty. Fifth, it contributes to sustainable development by supporting businesses that create social and economic value, rather than simply extracting resources from communities.
There are many other reasons why impact sourcing is important, but these are some of the most important ones. Impact sourcing is an important part of the global effort to reduce poverty and create a more inclusive economy.
What are the types of sourcing?
There are four main types of sourcing:
1. Direct sourcing
Direct sourcing is the process of procuring goods or services from a supplier without going through a third-party. This is usually done when the company has a good relationship with the supplier and is confident in their ability to provide the required goods or services.
2. Indirect sourcing
Indirect sourcing is the process of procuring goods or services from a supplier through a third-party. This is usually done when the company does not have a good relationship with the supplier or is not confident in their ability to provide the required goods or services.
3. Strategic sourcing
Strategic sourcing is the process of procuring goods or services from a supplier with the intention of creating a long-term relationship. This is usually done when the company believes that the supplier can help them achieve their long-term goals.
4. Spot buying
Spot buying is the process of procuring goods or services from a supplier on an as-needed basis. This is usually done when the company needs the goods or services quickly and does not have time to establish a long-term relationship with a supplier.