The backup supplier you never buy from isn’t a backup

Two names on the approved list feels like resilience. Whether it actually is depends almost entirely on how much you buy from the second one.

By Steve 5 min read
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Most businesses that believe they are dual-sourced are not. They have a primary supplier taking almost all the volume and a second name on the approved vendor list, kept warm with an occasional small order, a renewed certificate, and an annual price list that nobody has tested. On paper, that is two suppliers. In practice it is one supplier and a contact. The distinction stays invisible while conditions are normal. It becomes expensive at exactly the moment the arrangement was supposed to pay off: a fire, a quality failure, an…

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Important: General information only. Rialto Bridge articles describe patterns and considerations that may apply to a business; they are not financial, legal, tax or accounting advice, and they take no account of your particular circumstances. Consider your own situation and seek advice from a qualified professional before acting.

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