{"id":2415,"date":"2008-01-31T15:06:00","date_gmt":"2008-01-31T15:06:00","guid":{"rendered":"https:\/\/www.certitrek.com\/nlpa\/2008\/01\/31\/back-to-the-dual-vs-single-source-question\/"},"modified":"2021-07-29T10:57:12","modified_gmt":"2021-07-29T14:57:12","slug":"back-to-the-dual-vs-single-source-question","status":"publish","type":"post","link":"https:\/\/www.certitrek.com\/nlpa\/blog\/back-to-the-dual-vs-single-source-question\/","title":{"rendered":"Back To The Dual vs. Single Source Question"},"content":{"rendered":"

Back in September, I wrote the PurchTips article \u201cDual Source vs. Single Source\u201d to make some suggestions to help determine whether dual sourcing or single sourcing was a better alternative for a contract.<\/p>\n

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Specifically, I wrote: \u201cUpon bid receipt, compute the cost of doing business with the two qualified suppliers who bid the lowest for the 70% and 30% chunks of your business. Compare that cost with the lowest qualified single source bid. Is there a cost difference between the single and dual source options? If so, does the lower risk justify the premium?\u201d<\/p>\n

Since then, I\u2019ve gotten some questions that have made me wish I was more specific how to do that comparison. To do that comparison, you have to identify the total cost of all possible combinations.<\/p>\n

For example, if you had three suppliers bidding, your combinations would be:<\/p>\n