Link to "2-20.2 Use of Multiple Suppliers" Link to contents for "2 USPS Supplying Practices Process Step 2: Evaluate Sources"      Link to "2-20.4 Other Topics Considered"

2-20.3 Use of Single Suppliers

Single sourcing is the decision to use only one supplier to fulfill a requirement, given time and other constraints (e.g., joint research and development [R&D] or an investment that effectively makes that supplier the only practicable source for the future). The purchase/SCM team must ensure that those making the requirement are aware of the future risks of single sourcing, which can include greater vulnerability to rising prices and greater exposure to interrupted supply continuity. Generally, single sourcing may be appropriate when:




Link to "2-20.2 Use of Multiple Suppliers" Link to contents for "2 USPS Supplying Practices Process Step 2: Evaluate Sources"      Link to "2-20.4 Other Topics Considered"