You dual-sourced the component. Both suppliers buy from the same plant.

Two invoices from two vendors can hide a single point of failure, and the tell usually shows up in their pricing long before it shows up in a shortage.

By Steve 5 min read
Abstract bridge artwork for You dual-sourced the component. Both suppliers buy from the same plant.

Most procurement policies contain a sentence about avoiding single-source dependency. Most businesses believe they comply with it. The awkward question is what the second source is actually a second source of. A firm with two approved vendors for a critical input has two contracts, two account managers, two sets of lead times and two price points. What it may not have is two ways of getting the input. If both vendors buy the same sub-assembly from the same plant, both draw on the same specialist coating line, or both depend…

Keep reading for free

Create an account to read the rest.

The whole library is free. No card, no subscription, no trial that quietly ends. An account simply lets us know who we are writing for, and opens every article from here on.

  • Every article, in full, at no cost
  • New articles published every weekday
  • Takes about twenty seconds
Create a free account I already have one

Free means free. We will not charge you for the library, and you can read as much of it as you like.

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.

More on Operations

Scroll to Top