Which term describes collaboration between a company and external suppliers?

• A. Nearshoring
• B. Co-sourcing
• C. Inventory Management
• D. ERP

Answer: (B)

Co-sourcing describes collaboration between a company and external suppliers. It means the company works closely with outside partners to perform functions that are shared or integrated with internal teams, combining internal capabilities with external expertise to achieve common goals. This is different from a location-based move of work, which is nearshoring and focuses on where work is done rather than how suppliers are engaged. Inventory management is about controlling stock levels within the company, and ERP refers to the software system that coordinates data across the organization. So, the term that best captures collaboration with external suppliers is co-sourcing.