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Sole sourcing describes the situation in which there is only one available supplier that can fulfill the 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).
Sole sourcing may be the result of a monopoly, where only one supplier exists capable of satisfying a requirement. Situations involving a monopoly must be fed back into the purchase planning process so that the Postal Service can take steps to either broaden the requirement or stimulate competitive suppliers in the future. Sole sourcing may also be imposed by the client’s bona fide need for a specific source for a good or service or as a requirement of other stakeholders. In either case, the purchase/SCM team must ensure that those making the requirement are aware of the future risks of sole sourcing, which can include greater vulnerability to rising prices and greater exposure to interrupted supply continuity.
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