All of those practices have to be refined. Finally, look at how sourcing can help differentiate a product. Once, that is, a company knows what supply and value chains are critical for it to gain competitive advantage. Take, they say, a car, washing machine or a computer. Certain qualities within these allow for differentiation.
Some components are very commodity-like.
Others are more unique. The key is to look at those non-commodity items that will help gain a competitive edge. And outsource the rest.