Sole sourcing occurs when only one supplier can practically meet the requirement, often because of intellectual property, certification, compatibility, location or an emergency.
The operating decision
The buyer should record the factual basis for the exception and test whether an alternative specification, repair, substitute or timetable would create competition.
Evidence to retain
Keep the justification, approval, price analysis, conflict checks and evidence of the supplier’s exclusive capability.
| Area | What to record |
|---|---|
| Decision | The buyer should record the factual basis for the exception and test whether an alternative specification, repair, substitute or timetable would create competition. |
| Evidence | Keep the justification, approval, price analysis, conflict checks and evidence of the supplier’s exclusive capability. |
| Watch point | A preference for an incumbent does not establish a sole source. The file should show why other suppliers cannot meet the requirement. |
A common sourcing mistake
A preference for an incumbent does not establish a sole source. The file should show why other suppliers cannot meet the requirement.
Related definitions: strategic sourcing, supplier prequalification, landed cost.
