The decision to go with a single source is often based on the price they offer and sometimes based upon a superior product to all other suppliers. The primary advantage of a single source contract is that it gives you the option to shop based on factors that affect your bottom line. Sole source or proprietary procurement is defined as there being only one supplier of a certain good or product. is one in which the supply of product or service is awarded to a selected vendor or service provider without conducting competitive bidding. This vendor/ supplier is the only source for this specific input. A sole source example would be the computer company Dell, it’s accessories specifically. After evaluating those options, you choose the single source vendor that best matches your wants and needs. How to Implement an Effective Strategic Sourcing Initiative. If your company decides to buy only Dell computers then that is single source purchasing. When dealing with a sole source option, you are unable to switch suppliers as there are no alternatives available. This case may not be due to time constraints but may also happen due to the equipment spare parts (for example) needed are almost phased out in the market or particular specilaty service is very hard to find. Register now In simple terms, it is the decision to select one certain supplier, although there are others who offer the same or very similar product. The sole source has either established a monopoly or is the only provider within a geographic region from which business owners can obtain what they need. Why Add a Sole Provider Clause in a Contract? Reference price lists, but still get a quote as they often tend to be less than advertised. Information about Single Sourcing vs. Get Fresh Updates On your job applications, and stay connected. Having a single source means there is less work involved in qualifying the source and probably less administrative effort to be expended. Compare the same or similar products from. Single source: is the source who has particular items available in stock and others do not have it or has only quoted for the required items and others did not. Single source procurement is an order where you decide which suppliers offer the best price and quality for your specific need. This way the process can be repeated to find an alternative vendor. A sole source is defined as the only supplier that can provide you with the goods or products you need. When you’re evaluating the merits of a contract with a supplier, you typically have a choice among different companies that can provide you with the products you need. Investigate if there are industry standards surrounding the part you need. Cutting corners in business is rarely a good idea, but trying to find the best deal possible is one of the most effective ways to drive profits. Having only one supplier, distributor or vendor reduces the amount of time you must spend researching products and negotiating prices with vendors.

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