What Is Multi-Sourcing?
Sourcing the raw materials, components, products, and outsourced services needed to conduct your business is a core part of any organization’s operations.
While some business owners would argue that a smaller pool of vendors translates to better terms, service and more personal attention pricing, a growing number of businesses are making a strategic shift away from single-source supplier agreements in response to global events that threaten to disrupt supply lines or raise costs. As a result, multi-sourcing is gaining popularity as a procurement model.
Driven by organizations that seek to mitigate risk as well as businesses that seek more flexible, innovative and competitive supplier relationships, multi-sourcing offers a number of attractive advantages.
However, multi-sourcing can increase the complexity of managing suppliers. Procurement process automation, where you digitize and replace manual workflows with electronic ones, can make a huge difference in managing this added complexity allowing you to reap the full benefits of multi-sourcing.
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