Double Sourcing or Dual Sourcing is a way of acquiring goods in which one and the same product is taken from two different bidders.

 

Brief description

With Double Sourcing, care is taken to ensure that if one supplier drops out, delivery is still assured. Unlike Single Sourcing, there is also less risk of one supplier exceeding its capabilities. The disadvantages of this strategy are similar to those with Single Sourcing. In addition, there is also a danger here of both suppliers jacking up the price in terms of competition, as it may be profitable for each bidder to receive a small volume of an order at a high price.