Dual sourcing

Dual sourcing uses two suppliers for the same product or requirement. It can reduce dependence on one supplier, although the buyer must manage differences in specifications, minimum orders and delivery performance.

The buyer may split routine volume between both sources or use one as the main supplier and maintain the second as a qualified backup. Merely having another supplier's contact details is not sufficient if its product, capacity or lead time has never been tested. Compatibility and switching arrangements matter.

For example, a wholesaler may buy cartons from two manufacturers using the same specification. If one plant stops production, the other can supply an agreed extra quantity. Dual sourcing reduces concentration compared with single sourcing, but cannot eliminate shared risks when both suppliers depend on the same raw material source.