Supply Chain · Sourcing · Component
The concentration position
Where the organisation depends on one source, and whether that is a decision or an accumulation.
The deliverable
What it is
Single sourcing is a legitimate strategy that buys depth, price and collaboration at the cost of a single point of failure. It becomes a problem when it happens rather than when it is chosen.
The switching cost is the field that determines whether the concentration is reversible, and it rises quietly through bespoke specification and integration.
One level in
What it is made of
Each element is a constituent part of the component. Follow one to see the attributes it carries.
The single sources
Inputs where one supplier provides all or nearly all.
3 attributes: Input · Supplier · Share
LearnThe rationale
Why this input is single-sourced, and whether it was decided.
3 attributes: Deliberate · Reason · Alternatives exist
LearnThe switching cost
What it would take to move to another source.
3 attributes: Switching cost · Switching time · Trend
Learn
Cheap critical inputs get single-sourced without thought, because the spend never attracts attention.
The other components in sourcing
The supplier list
Who supplies what, on what terms, and at what share of each input — the base record everything else in the object depends on.
LearnThe total cost comparison
What each option actually costs once quality, lead time, terms and switching are included — which reverses the ranking often enough to be worth doing every time.
Learn