Dual Sourcing

• Medium involvement • Low dependence

and trust • Mild switching costs
• Fast information flows • Less transparent
• Reduced lead times procedures
• Personal relations are • Medium flexibility
better • High inventory in some
• Extremely high cases
responsiveness • Chance of great
• Competition of time confusions
• Economies of scale
Multiple Sourcing
• More than two suppliers for one item / one part /
one sub-assembly or one service

• Should be preferred when product is simple,

production techniques not very confidential & time
pressure is less. Major focus is on direct price
reduction, competitive bidding
• Long term partnering relationship is not a goal
• Extreme pressure on supplier