Engineering Experts Company $($EEC$)$

Engineering Experts Company $($EEC$)$ purchases a wide range of goods and services, ranging from small components to major sub$-$assemblies, such as engines for materials handling equipment. EEC has a large number of tried and tested existing suppliers, but sometimes it needs to find a new source of supply, particularly when it is looking to manufacture new types of equipment. This is because of the need to access continually advancing technology. The procurement function has a comprehensive supplier database to provide information on current supplier$$s capabilities. When significant new purchases are required, the procurement function will sometimes involve other stakeholders in the sourcing process, EEC has a number of new projects starting, which will require a wide that new supply sources will need to be found.

The variety of new purchases means that the procurement manager must decide which purchases to prioritize. Supplies must be sources so that important items such as major sub$-$assemblies will be in place first. Other purchases of less importance can then be sourced.

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Explain why clearly defining needs would be an important stage of the sourcing process for EEC.