chapter 14sourcing decisions in a supply chain outline the role of sourcing house vs outsourcing 3 pl and 4 supplier scoring assessment selection contracts design collaboration procurement process planning analysis it risk management making practice off shoring what s difference is tradeoff between surplus sourcingin set business processes required to purchase goods services include contract negotiation benefits effectivesourcing better economies scale can be achieved if orders are aggregated more efficient transactions significantly reduce overall cost purchasing result products that easier manufacture distribute resulting lower costs good facilitate coordination with suppliers appropriate allow for sharing firms achieve price by increasing competition through use auctions how do 3rd parties increase sc capacity aggregation due