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Material sourcing / acquisitions

Managing the role of materials sourcing has become extremely challenging. Reducing time and costs are important goals of sourcing, but increased regulations and more rigorous enforcement make these goals difficult to achieve. Current trends have forced companies to more rigorously optimize sourcing activities for raw materials, intermediates, and other material components , If managed improperly, sourcing can result in supply chain interruptions, significant unexpected expenses and quality control issues.

Acquisition
An acquisition occurs when a buying company obtains more than 50% ownership in a target company. As part of the exchange, the acquiring company often purchases the target company's stock and other assets, which allows the acquiring company to make decisions regarding the newly acquired assets without the approval of the target company’s shareholders.