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Single sourcing is the selection of a strategic source from a number of possible sources to fulfill all Postal Service requirements for a particular class of goods or services. Single sourcing should be considered when there is a strategic or key supplier among the pool of potential suppliers. Single sourcing is to be distinguished from sole sourcing, which occurs when there is genuinely only one supplier that can meet the requirement. Single sourcing is justified for:
When single sourcing is determined to be the strategic approach for a particular purchase, the purchase/SCM team should be prepared to develop a business justification validating that the single sourcing approach, as opposed to multiple sourcing, does in fact provide the Postal Service with the best overall value. As it did when the preliminary sourcing strategy was developed, the purchase/SCM team must also consider whether the single source strategy may potentially negatively impact the Postal Service’s commitment to establish and maintain a strong competitive supplier base by putting SMWOBs at a competitive disadvantage, and whether, among other things the single source strategy is justified in light of these other considerations. In these instances, it will be important for the purchase/SCM team to gather and analyze the pertinent data that supports the single sourcing approach. The proper analysis and data to support and build a business justification for a single source strategy can be obtained through:
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