What is the distinction of a Single Source Supplier?

A Single Source Supplier is a provider that is chosen despite the existence of other options in the market. This selection often arises from specific reasons such as unique capabilities, specialized products, or strong relationships that make the selected supplier the preferred choice, regardless of the availability of other alternatives.

Choosing a single source can be strategic, allowing companies to develop deeper partnerships, ensuring consistent quality, and potentially streamlining operations. This is distinct from other factors such as cost, delivery speed, or exclusivity, which may not necessarily define a single source relationship. Only selecting the supplier based on the absence of others does not capture the complexity of a strategic decision to engage with a single source.

Therefore, while cost, delivery times, and exclusivity may be characteristics of a supplier, they do not define the primary distinction of a Single Source Supplier. Instead, it emphasizes the choice to exclusively partner with a particular supplier due to factors other than mere availability, aligning closely with the business’s specific needs and goals.