Dual sourcing awards the same or substitutable requirement to two suppliers. The buyer uses both sources to balance capacity, competition and continuity risk.
The operating decision
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.
Evidence to retain
Track capacity, quality, lead time, price, switching constraints and the minimum volume required to keep each source viable.
| Area | What to record |
|---|---|
| Decision | 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. |
| Evidence | Track capacity, quality, lead time, price, switching constraints and the minimum volume required to keep each source viable. |
| Watch point | A nominated second supplier is not a real backup if it has no current qualification, volume, materials or production slot. |
A common sourcing mistake
A nominated second supplier is not a real backup if it has no current qualification, volume, materials or production slot.
Related definitions: strategic sourcing, supplier prequalification, landed cost.
