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Single Supplier

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Submitted By mbonino
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9 Reasons To Switch to a Single Supplier
There are two different supplier methodologies when looking to support a supply chain - a multiple supplier system (MSS) and a single supplier system (SSS). Benefits to installing a SSS include but are not limited to: increased stability, availability of resources, dedicated assembly, increased supplier responsibility, efficient training and document control, minimized issue identification and the reduction of management costs. Risks include but are not limited to: limited viewpoints and/or solutions to issues, sole dependence on a single supplier, loss of benchmark opportunities and the need for a contingent supplier.
A single source system increases volume for the supplier which increases the duration of assembly allowing time for stabilization through increases processing time and dedicated production lines. Additionally, increased volume allows the supplier to reduce the costs and increase the quality of the raw materials. A SSS also eliminates many areas of redundancy required in managing multiple suppliers – process control documents, training staff and support costs associated from management expenses associated with travel. Risks associated with employing a SSS minimize the pool of which solutions to issues or improvement of processes can be obtained. The “putting all the eggs in one basket” approach also creates a large dependence on the supplier to effectively deliver as promised and leaves the company vulnerable to issues when the supplier cannot meet expectations as expected.
This article raises an extremely strong argument for employing single source supplier that is hard to deny if delivered effectively. The main goal is always to reduce costs, increase quality and efficiencies, maximize profits. SSS is a path to deliver these

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