What is the primary benefit of dual sourcing in procurement?

The primary benefit of dual sourcing in procurement is that it minimizes the risk of supply interruption. By working with two suppliers for the same product or service, an organization can ensure that if one supplier faces issues—such as production delays, capacity problems, or unforeseen events—there is a backup supplier ready to fulfill the demand. This strategy enhances supply chain resilience, allowing businesses to maintain operations without significant disruption.

Dual sourcing promotes stability in supply by diversifying the source of critical materials or services, thus significantly reducing the dependency on a single supplier. This flexibility is especially important in volatile markets or industries where supply chain risks may be higher. By mitigating the risk of disruptions, organizations can better safeguard their operations and maintain service levels to their customers.