When might a buying organization decide on a multiple sourcing strategy?

In a multiple sourcing strategy, a buying organization seeks to leverage several suppliers for the same goods or services. This approach is particularly advantageous when many supply options are available. With multiple suppliers, the organization can enhance competition among them, potentially leading to better pricing, improved service levels, and reduced risk associated with dependency on a single source.

This strategy is effective in situations where market conditions allow access to various suppliers, enabling the organization to diversify its supply base and mitigate supply chain disruptions. By engaging multiple suppliers, organizations can also take advantage of the unique strengths and capabilities that different suppliers bring to the table, fostering innovation and flexibility in operations.

While the need for reliability and valuable relationships can influence sourcing decisions, a multiple sourcing strategy is predominantly driven by the availability of diverse supply options that can offer the buying organization alternatives and resilience in its supply chain.