What Is Dual Sourcing?

Dual sourcing awards the same or substitutable requirement to two suppliers.

Dual sourcing awards the same or substitutable requirement to two suppliers. The buyer uses both sources to balance capacity, competition and continuity risk.

How should a business apply Dual Sourcing?

Set an allocation rule before award, such as a primary and backup split or a fixed percentage for each supplier. Both sources need approved specifications and usable tooling or data.

What records support Dual Sourcing?

Track capacity, quality, lead time, price, switching constraints and the minimum volume required to keep each source viable.

Dual Sourcing: what the sourcing record should show

Dual Sourcing: what the sourcing record should show
AreaWhat to record
DecisionSet an allocation rule before award, such as a primary and backup split or a fixed percentage for each supplier. Both sources need approved specifications and usable tooling or data.
EvidenceTrack capacity, quality, lead time, price, switching constraints and the minimum volume required to keep each source viable.
Watch pointA nominated second supplier is not a real backup if it has no current qualification, volume, materials or production slot.

What is a common Dual Sourcing mistake?

A nominated second supplier is not a real backup if it has no current qualification, volume, materials or production slot.

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