Sourcing Strategy Consider a company DSL Pvt. Ltd that operates in the cough syrup industry. Cough syrup is an over-the-counter (OTC) drug. OTC drugs can be sold without any prescription from a doctor. Following are the three important steps in the making and selling cough syrups: Sourcing of good quality solvents which is highly critical for making the syrup Chemically treating the solvent with other pharmaceutical drugs to make the final product - the cough syrup Packing and transporting the syrups to medical shops and selling them through these shops to the end consumers DSL has always been making and selling its own cough syrups using solvents sourced from third-party suppliers. However, due to new guidelines from the Central Drugs Standard Control Organisation (CDSCO), all cough syrup companies have to make their own solvents rather than source it from third-party suppliers. As a result, DSL decided to have a dedicated assembly line in its production facility to produce high-quality solvents that it can then use to produce cough syrups. Determine what kind of sourcing arrangement is followed by DSL for its solvents now. Outsourcing Forward integration Spot purchasing Backward integration