What Is Single Sourcing?

Single sourcing is the deliberate choice to buy a requirement from one supplier even though alternatives may exist.

Single sourcing is the deliberate choice to buy a requirement from one supplier even though alternatives may exist. Buyers use it for standardization, volume leverage, integration or a strong incumbent relationship.

Single Sourcing: what the sourcing record should show
AreaWhat to record
DecisionDocument why one source creates more value than a split award and define the review point. The contract should address continuity, capacity, data, tooling and transition support.
EvidenceMonitor dependency, financial health, performance, alternative supply markets and the time needed to qualify another source.
Watch pointSingle sourcing is a commercial decision. Sole sourcing arises when only one practical supplier is available.

When the term matters

Document why one source creates more value than a split award and define the review point. The contract should address continuity, capacity, data, tooling and transition support.

Checks before approval

Monitor dependency, financial health, performance, alternative supply markets and the time needed to qualify another source.

Single sourcing is a commercial decision. Sole sourcing arises when only one practical supplier is available.

Related terms

strategic sourcing, supplier prequalification, landed cost.