In our online class “Mastering Procurement Tactics”, you’ll get more than just an introduction to purchasing—you will become an expert at flawlessly executing and managing purchases. Today, a student asked for more reasons why an organization may consider single-sourcing beyond what is already covered in the class and/or in a more summarized format.
Here are the summarized top reasons for single sourcing that I shared with him:
1. Lower pricing due to consolidation of all requirements with one supplier
2. More consistent quality
3. Lower purchasing workload due to communication with fewer suppliers
4. Easier to manage supplier performance because you are tracking fewer suppliers
5. Easier to track down the source of problems as well as affected products in the event of a quality investigation/recall
I hope this helps you, too.
But you should know that there are also downsides to single sourcing. I recommend that you also read our article “Dual Source vs. Single Source.”
Now I gotta go cook a Thanksgiving meal for the first time…
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