Single sourcing

Single sourcing means choosing one supplier for a requirement even though other suppliers are available. It can support consistent quality and a closer relationship, but disruption at that supplier may affect the buyer's ability to obtain goods.

A buyer may single-source to secure better volume pricing, consistent specifications or joint product development. The choice can also reduce the cost of qualifying and managing alternatives. However, a backup plan is important where delays, capacity shortages or business failure would leave the buyer unable to obtain essential goods.

For example, a retailer might purchase all branded bags from one preferred printer despite other printers being available. This is single sourcing. If only one business can legally or technically supply the required item, the situation is sole sourcing rather than a voluntary concentration of purchasing.