Supplier Selection -- Single Source & Alternate Source

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There are two types of sourcing while purchasing:

1.      Single sourcing: 

    Single sourcing involves a single source only. It has indirect costs and risks incurred as it depends on only one vendor purchasing. Depending on single sourcing can uncover the plausibility of not being able to urge basic supplies in the event that the supplier's operations are disturbed.


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2.      Alternate sourcing: 

    It involves multiple and alternate sources, there may be 2 to 3 vendors included while purchasing material. Numerous sourcing procedures can advantage businesses that lean toward spreading requests over a number of providers that, collectively, have more capacity and are more responsive to the buyer.

In my point of view, I prefer multiple and alternate sourcing as it has more benefits like:

·         Guarantees portion accessibility at ideal levels.

·         Reduced dependency on any one vendor giving a security net on the off chance that a supplier runs into challenges.

  • Reduces the bottlenecks situation of inventory as more providers are able to meet top demand.

·         Competition between vendors causes high benefits to the customer.

·        

 By Kahkshan Asif ☺

 

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