Sourcing refers to the process of identifying, evaluating, and selecting suppliers who can provide the goods and services a company needs to operate. In the life-science industry, sourcing is a critical step because it directly impacts the quality of end products and compliance with stringent regulatory standards. This could involve sourcing raw materials like active pharmaceutical ingredients (APIs), components for medical devices, or services such as clinical trial management. Effective sourcing ensures that these materials and services not only meet the required quality standards but are also cost-effective and reliable in terms of supply.

Procurement is the broader process that encompasses sourcing as well as purchasing and the strategic approach to managing and optimizing the costs and value of the purchased goods and services. In life sciences, procurement must be closely managed to ensure that there are no disruptions in the manufacturing and distribution of products. This involves contract management, quality control, and ensuring timely delivery. Procurement in this industry not only focuses on acquiring goods at the best possible price but also managing relationships with suppliers and ensuring compliance with health and safety standards, regulatory requirements, and ethical considerations.

Tendering is a specific procurement process used to invite bids for large-scale projects or large orders. In the life-science industry, tendering is often used by governments and large institutions (like hospitals) for purchasing pharmaceutical products or medical equipment in bulk. This process is generally formal and follows a structured procedure where an organization issues a tender notice, inviting qualified suppliers to submit their bids. The goal is to promote transparency, competition, and fairness in the selection of suppliers, which ideally leads to cost savings and better compliance with project specifications.