Sourcing is about finding the balance between the quality of raw materials and affordability. The less you can spend on materials, the better the profit margins for your business. Cost savings are important, but, if you are too cheap and buy shoddy materials, your resulting product is of lesser quality. There are three types of sourcing, which is outsourcing, manufacturing, and low-cost country sourcing (LCCS). Outsourcing implies a change from in-house material supply to purchasing materials from a supplier; therefore, production outsourcing can affect material supply in terms of delivery reliability, lead times, and product quality.  Manufacturing is the creation of new products either from raw materials or components. Low-cost country sourcing (LCCS), involves sourcing materials from countries with lower labor and production costs. This type of sourcing focuses on cutting down the overall operating expense of an organization. China has become the go-to country for this sourcing method for most global corporations. Example of a company that applies this type of sourcing are Nike, Coca-Cola company and nestle.