FAQ- Frequently Asked Questions

1. What is Sourcing?

Sourcing is choosing the suppliers who provide the goods you need.

2. What is Procurement?

Procurement is acquiring goods, handling payments, & the shipping and other logistics.

3. What is The Difference Between Sourcing & Procurement?

While both are a part of the supply chain & how you manage it, sourcing is the first step (finding the vendor that suits you & negotiations over the terms and payments) & procurement is the second (purchasing the items & dealing with the logistics).

4. Can Sourcing & Procurement Be The Same?

Well, as a SME you might be able to classify them as one under Supply Chain Management, but as your business scales, the distinction between sourcing and procurement becomes more critical in order to optimize efficiency & cost management.

7. Challenges in MENA Procurement

Investing in the GCC is a safe option. However, Countries outside of it are still considered risky investments due to many reasons:

• Geopolitical Risks: Regional instability and trade restrictions.
• Supply Chain Disruptions: Shipping issues (e.g., Red Sea, Suez Canal).
• Regulatory Complexity: Different laws across countries.
• Currency Fluctuations & Inflation: Impacting cost control.

8. What is Supply Chain Management?

SCM or Supply Chain Management is the coordination of goods, services, information, and funds flow from raw material procurement to delivering products to end customers. Some of the most important SCM components are:

Sourcing & Procurement

• Supplier search and selection.
• Contract negotiation and prices.
• Supplier compliance and quality assurance.

Production & Manufacturing

• Converting raw materials to products.
• Production schedules and efficiency planning.
• Deploying quality control practices.

Inventory Control

• Stockroom inventory management.
• Managing stock quantities and warehouses.
• Prevention of stockouts or excess stocks.
• Deployment of forecasting demands for stock replenishment.

Logistics & Shipping

• Freight from customers, manufacturers, warehouses, and suppliers.
• Determining shipping mediums (air, sea, land, rail).
• Determine route in terms of speed and pricing.

Warehousing & Delivery

• Warehouse goods before actual delivery.
• Run fulfillment facilities and last-mile delivery.
• Executing automation in the orders velocity.

Customer Service & Refund (Reverse Logistics)

• Service through taking customers’ inquiry calls and complaints.
• Processing customer refunds, exchanges, and recycling.
• Delivering customer satisfaction and service quality.

9. Why Is Supply Chain Management So Important?

✔ Cost Effectiveness – Reduces waste, storage costs, and inefficiencies.
✔ Speed & Reliability – Ensures faster delivery.
✔ Competitive Advantage – An efficient supply chain improves market position.
✔ Risk Management – Helps companies manage disruptions (e.g., delayed shipments).
✔ Sustainability – Includes green sourcing and minimizing waste.

10. Do people offer supply chain management?

Yes many company including ours, offers supply chain management the largest are:

• Consulting Companies; (Accenture, McKinsey, Deloitte, PwC)
• Courier & Logistics Services (DHL, FedEx)

11. Are There Any Software to Help Track SCM?

Many software companies also offer SCM assistant tools to optimize your effiency like Oracle, Odoo, SAP, & Zoho.

12. What is Dropshipping?

Dropshipping is when a company has a business model where it doesn’t have any products in stock. Instead, when a customer makes a purchase, the retailer buys the product from a third-party supplier who ships it directly to the customer.

13. What Are The Advantages & Disadvantages of Dropshipping?

14. How do I verify the quality of a supplier?

• Check Certifications
• Request Samples
• Review Audits and Reports
• Check their Reviews
• Ask For References
• Visit the Supplier

15. What is Private Label Sourcing?

It is similar to sourcing, however, the product is branded to your specifications and sold under your brand and its name. This often includes having the exclusive rights to sell it under your name.

16. How Does Private Label Sourcing Work?

It works in a similar way to regular sourcing in the sense that you choose a product, find a manufacturer, negotiate, confirm quality, place the order & distribute the product. Except that you add the step of branding & customization.

17. How Can I Reduce Shipping Costs?

Groupage

The main way to reduce costs is through Groupage, a service we offer where you combine smaller orders and send them in one container or shipment massively reducing the shipping cost of a product or small order.

Partnerships

Partnerships with Freight Forwarders, Shipping or Sourcing Agents can help. A partnership with just one of these companies will help as they often work with each other on reducing your and their costs.