Question: How does the sourcing strategy differ when dealing with functional products compared to innovative products? How does the sourcing strategy differ when dealing with functional

How does the sourcing strategy differ when dealing with functional products compared to innovative products?
How does the sourcing strategy differ when dealing with functional products compared to innovative products?
The sourcing strategy for both types of products is essentially the same, focusing on cost reduction.
Functional products use a multi-source strategy to obtain competitive pricing, while innovative products use a single-source approach for specialized expertise.
Functional products typically require a single-source strategy due to their unique nature, whereas innovative products can be sourced from multiple suppliers.
Both functional and innovative products are best sourced through a multi-year contractual approach to ensure steady supply.

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