Single sourcing risks_2
17 August 2012
Q: How do I manage the risk associated with a sole supplier policy for strategic materials and services?
A: Colin Bell, director at Purcon-SCI, writes: The risks associated with single sourcing fall into three main areas: lack of competition, risk of major disruption (for instance, a fire on the supplier’s premises) and limits to innovation.
- Lack of competition: Select only suppliers that are able to demonstrate their...