You have two suppliers. Both buy from the same factory.

Dual sourcing looks like resilience on a vendor list. Whether it actually is depends on a question most procurement processes never ask.

By Steve 5 min read
Abstract bridge artwork for You have two suppliers. Both buy from the same factory.

A business with two approved suppliers for a critical input will usually describe itself as dual sourced. The purchase ledger supports the claim: two names, two contracts, two sets of terms. Then a fire, a port closure or an insolvency takes out both at once, and it becomes clear that the redundancy was in the paperwork rather than the supply chain. The mechanism is simple and easy to miss. Resilience is a property of the whole chain, not of your vendor list. You contract with tier one. The constraint frequently…

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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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