What does Single Sourcing mean?

Single Sourcing describes the procurement of certain goods from a single supplier.

In most cases, this makes sense if you are striving for a close partnership with this supplier, or if other strategic advantages are expected. For example:

  • A supplier development is planned with this supplier (i.e. quality leadership)
  • The supplier has been involved from the product development phase onward
  • The order volume from this supplier is already very high, so that bundling potentials can be used
  • There are advantages regarding total cost of ownership: less effort concerning transactions, deliveries, etc. through routine operations, basic agreements, etc.
  • Only this supplier produces the desired quality for the desired price
  • The customer expects precisely this component in their final product, for example an engine that only this supplier manufactures
  • If a supplier supplies multiple components for a whole system, a higher compatibility can be expected
  • etc.
SpendControl 2017
Calculate the "Single Sourcing" KPI - With the SpendControl controlling software, you are able to calculate many KPI’s for strategic purchasing, such as the Single Sourcing quota in your company

With its standardized ERP interfaces you can connect the spend cube of SpendControl within a short time frame to any ERP system (e.g. SAP, Navision, Oracle etc.).
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