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This guide breaks down every major type of sourcing — single vs multiple, global vs domestic, low-cost-country, near-shoring and China+1, outsourcing vs in-house — and gives UAE and global importers a clear framework for choosing the right mix as they scale.
Last updated: 17 June 2026
In short: The main types of sourcing are single vs multiple sourcing, global vs domestic sourcing, low-cost-country sourcing, near-shoring and China+1, and outsourcing vs vertical integration. Most growing businesses use a blend — and the right mix depends on your priorities for cost, speed, risk and control.
What is sourcing?
Sourcing is the process of finding, evaluating and engaging suppliers to provide the goods, components or services your business needs. It is broader than purchasing: it covers where you buy, how many suppliers you use, and how you manage risk and quality across your supply chain.
What are the main types of sourcing?
Each sourcing strategy trades off cost, risk, speed and control differently. The table summarises the main types.
| Type | What it means | Best when |
|---|---|---|
| Single sourcing | One supplier for a product or component | You want simplicity, volume discounts and a deep partnership |
| Multiple sourcing | Two or more suppliers for the same item | You need to reduce risk and keep pricing competitive |
| Global sourcing | Buying from international suppliers (e.g. China, Vietnam) | Cost or capability is better overseas |
| Domestic sourcing | Buying locally or within your region | Speed, lower duties, or "made local" matters |
| Low-cost-country sourcing | Targeting countries with lower production costs | Price is the primary driver and lead time is manageable |
| Near-shoring / China+1 | Adding a second country (e.g. Vietnam) alongside China | You want to spread risk and tariff exposure |
| Outsourcing | A third party handles sourcing or production | You lack in-house capacity or local expertise |
Single vs multiple sourcing — which is safer?
Single sourcing is simpler and often cheaper per unit because you concentrate volume with one partner. The risk is dependency: if that supplier has a quality issue, price hike or shutdown, you have no fallback. Multiple sourcing costs a little more to manage but protects you against disruption — a lesson many importers learned during recent supply-chain shocks.
What is low-cost-country sourcing?
Low-cost-country sourcing means deliberately buying from regions where labour and production costs are lower — historically China, and increasingly Vietnam, India and Southeast Asia. The savings can be substantial, but they must be weighed against longer lead times, communication gaps, and the need for on-the-ground quality control. Our low-cost-country sourcing strategy guide goes deeper on getting this right.
What is China+1 and why does it matter for UAE importers?
China+1 means keeping China as a core supplier base while adding a second country — most often Vietnam — to diversify risk and reduce tariff and concentration exposure. For UAE and GCC importers, this fits naturally: Dubai's role as a re-export hub through Jebel Ali means a diversified supply base can be consolidated and redistributed efficiently across the region. Many of our clients pair China sourcing with sourcing from Vietnam for exactly this reason.
Should I use a sourcing agent or source myself?
A sourcing agent is a form of outsourcing: you delegate supplier discovery, vetting, negotiation and quality control to specialists with local presence and language skills. Doing it yourself gives you full control but demands time, travel, and the ability to verify factories remotely. For most SMEs scaling across borders, an agent removes risk and accelerates the timeline — especially when the agent has bilingual teams physically present in the supply market.
How do I choose the right sourcing strategy?
Start from your top priority. If cost dominates, lean toward low-cost-country and single sourcing. If resilience matters most, use multiple sourcing and China+1. If speed-to-market is critical, weigh domestic or near-shore options. Most mature importers run a hybrid — a primary low-cost supplier, a backup in a second country, and an agent managing quality across both.
How Epic Sourcing helps
Epic Sourcing helps UAE and global importers design and run the right sourcing mix — with bilingual teams on the ground in China and Vietnam handling supplier discovery, vetting and quality control. Explore our sourcing services and end-to-end sourcing, or talk to our team about your strategy. To go further, read how to plan freight once you've chosen suppliers in how long shipping from China takes.
FAQ
What are the four main types of sourcing?
The most common framing is single sourcing, multiple sourcing, global sourcing and domestic sourcing — with low-cost-country sourcing and China+1 as widely used sub-strategies.
What is the difference between sourcing and procurement?
Sourcing is finding and selecting suppliers; procurement is the broader process of actually buying, including ordering, payment and receipt.
Is single or multiple sourcing better?
Single sourcing is simpler and often cheaper; multiple sourcing is more resilient. Many businesses single-source low-risk items and multi-source critical ones.
What is China+1 sourcing?
Keeping China as a primary supply base while adding a second country, usually Vietnam, to diversify risk and tariff exposure.
Do sourcing services companies cover quality control?
Good ones do. A full-service sourcing partner manages supplier discovery, negotiation, factory audits and pre-shipment inspection — not just finding a price.