In sourcing strategies, what does the term "Single Source" describe?

In sourcing strategies, what does the term "Single Source" describe?

• A. Purchasing from a single supplier
• B. Purchasing from multiple suppliers
• C. Outsourcing to a third party
• D. Insourcing to internal teams

Answer: (A)

Single Source describes obtaining a required item or service from one supplier only. The main advantage is simplification: a single point of contact, unified terms, easier coordination, and often stronger collaboration that can lead to better quality, faster issue resolution, and favorable pricing through committed volumes or longer-term agreements. The trade-off is increased risk: if that supplier faces a disruption, there’s no immediate alternative readily available. This approach is chosen when the benefits of a close, committed partnership and predictable supply outweigh the risks, or when the item is highly specialized and effectively available from only one vendor. It is not about buying from multiple suppliers, outsourcing to another company, or bringing the work inside your own organization.

Single Source describes obtaining a required item or service from one supplier only. The main advantage is simplification: a single point of contact, unified terms, easier coordination, and often stronger collaboration that can lead to better quality, faster issue resolution, and favorable pricing through committed volumes or longer-term agreements. The trade-off is increased risk: if that supplier faces a disruption, there’s no immediate alternative readily available. This approach is chosen when the benefits of a close, committed partnership and predictable supply outweigh the risks, or when the item is highly specialized and effectively available from only one vendor. It is not about buying from multiple suppliers, outsourcing to another company, or bringing the work inside your own organization.