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CHAPTER TWO
LITERATURE REVIEW
2.0 Introduction
This chapter will attempts to some comments and opinions of the various authors as contained in the books, newspaper, magazine, journal etc in reflection to the subject matter “impact of material sourcing on the profitability in an organization”.
2.1 Definition of Sourcing (Material Sourcing)
According to Hassan (2010) define sourcing as a purchasing procedure through which buyers, sales, survey and evaluate suppliers and determine policies relating to those who will most suitable meet the requirement of the organization (p. 99).
Lysons and Farington (2006) define sourcing as the process of identifying, select and developing suppliers key purchasing activities. Sourcing can be either tactical and operational or strategic buds (p. 367).
2.2 Sourcing Policies/Decision
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