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Sourcing & Suppliers

Dual Sourcing

Dual sourcing is the practice of using two suppliers for the same item to balance competitive pricing against supply resilience.

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By splitting volume between two qualified suppliers, buyers keep both competitive on price and service while ensuring a backup if one has a disruption. It is a common risk-management approach for critical materials and components where a stock-out would be costly.

The cost of dual sourcing is more administration and potentially less volume leverage than single sourcing. Buyers weigh this against the value of resilience — which rose sharply after recent global supply-chain shocks made continuity a board-level concern.

Frequently asked questions

What is dual sourcing?
Dual sourcing uses two suppliers for the same item, splitting volume to keep pricing competitive while maintaining a backup source if one supplier is disrupted.
Why use dual sourcing?
To reduce supply risk on critical items — if one supplier fails, the other can cover — while keeping both competitive. The trade-off is more admin and less volume leverage.

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