Final answer:
Supplier integration is the practice where suppliers are given significant responsibility for the design of certain components or systems of a product, distinct from outsourcing which is contracting out services, and offshoring which is moving operations to another country.
Step-by-step explanation:
The practice of selecting suppliers and giving them significant responsibility for the design of certain components or systems of a product is called supplier integration. This approach is a strategic method used in production where the supply chain is closely aligned and coordinated with the internal processes of a company. In contrast to other practices such as outsourcing and offshoring, supplier integration is about creating a more integrated and collaborative relationship between a company and its suppliers. Outsourcing involves contracting with another firm to perform services or make products that were previously done in-house. Offshoring is the relocation of a business process from one country to another—typically an operational process, such as manufacturing, or supporting processes, like accounting. Both of these can contribute to the global assembly lines and the shifting job markets, significantly impacting the labor demand and economies around the world.