A SPECIFIC SUPPLIER DOES NOT ALWAYS…

During one of the business cases at the training, when the participant sees a strategy with just one specific supplier, the first action is to find a second source because of a single source situation.

This is not always true and I always give the same example: «At home I have just one brand of beer, does it mean that in the beer market there is a single source situation? No, there are lot of alternatives, but I consider that the one I buy is the best in terms quality and cost.»

It’s the same story in other markets and industries: there are many options, but due to balance of service, quality and cost we consider one of them as a unique source, because from our perspective it is the best.

In this case we have a specific supplier, not a single source, and it is not negative if the decision is driven by us. We decide to use the best, even if there are others in the market.

A single source situation is completely different: the decision to have one supplier is not driven by us but by the market. We would like to have alternatives, but we don’t have this possibility.

We need to work to avoid single sources, but not always unique suppliers.

… I still enjoy my beer 😉