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Sourcing & Suppliers

Sole Sourcing

Sole sourcing occurs when only one supplier is capable of providing a required item, leaving the buyer no practical alternative.

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Sole sourcing is driven by necessity rather than choice — the item may be patented, uniquely specified, or the only compatible option for existing equipment. Because there is no competition, buyers must manage the relationship carefully to keep pricing and service reasonable.

Procurement teams document sole-source justifications for audit and governance, and periodically test whether an alternative has emerged. It differs from single sourcing, where alternatives exist but the buyer deliberately chooses one supplier.

Frequently asked questions

What is sole sourcing?
Sole sourcing is when only one supplier can provide a required item — for example a patented or uniquely specified product — so there is no practical alternative.
How is sole sourcing controlled?
Buyers document a sole-source justification for governance and audit, manage the relationship closely to keep terms fair, and periodically check whether an alternative supplier has become available.

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