Multiple Sourcing

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Description of Multiple Sourcing. Explanation.


Definition Multiple Sourcing. Description.

Multiple Sourcing is the purchasing policy of using two or more or even many suppliers to purchase certain components, products, product groups or services.
Key advantages of Multiple Sourcing when compared to Single Sourcing include:

  • Low dependency of suppliers.

  • Spreading risks.

  • Encourages price competition.

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Compare with: Kraljic Model  |  Just-in-time  |  Co-Creation  |  Outsourcing  |  3rd Party Logistics (3PL)  |  Vendor Managed Inventory  |  Value Chain  |  Vertical Integration  |   Value Stream Mapping  |  Five Forces model  |  Strategic Alliance

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