SUPPLIER SELECTION AND EVALUATION

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SUPPLIER SELECTION AND EVALUATION:

Single sourcing: 

Single source purchasing refers to the purchase of only one selected supplier, even though there are many suppliers that can provide same product.



Multiple sourcing:

Multiple sourcing is the purchasing from one or more suppliers.

Both type of sourcing is helpful in their own ways.

According to my views Multiple sourcing is much helpful mand efficient then single sourcing. Because multiple sourcing gives us benefits in several different ways:

o   If we have alternate source of our approved materials we will not face shortages and delivery stoppage.

o   There would be reduced probability of bottleneck condition due to insufficient production capacity.

o   Due to alternate sourcing, the competition among suppliers increases which leads to better quality, price and delivery of material on time.

o   It lowers the cost with multiple suppliers and get great benefits from them because competition is high.

o  Suppliers improves their quality to satisfy buyers needs, there is sparking competition in between suppliers.

o   Risk of demand variability from single sole supplier reduced in multiple sourcing, company is protected from risk of damage as they have many other options.

 


However, dealing with one single supplier options are restricted. When the supply from single source is tight, the customer has to bear multiple challenges. So multiple sourcing is the better option to go with it.


By Kahkshan Asif ☺

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