30 Sep '12, 2am

from twitter | @SupplierB2B | @SupplyKnowledge

I am a believer in using second sourcing as a primary security-of-supply strategy. I know some believe that close relationships with a single manufacturer can yield better overall value and better supply security, but I am not of that school. My position is that two sources provide leverage by creating competition, which is good for pricing and provides a ready alternate supply option if there is any kind of short- or long-term interruption. The favored situation is for second sources to have factories in different regions to protect against natural disasters, political instability, labor unrest, fire, bankruptcy, and a host of other potential risks. In our work at Lytica , we consider single-manufacturer alternate sources risky even when they offer components with dissimilar family part numbers. I see a lot of lazy second sourcing. In these situations, engineers have spec...

Full article: http://www.ebnonline.com/author.asp?section_id=1128&doc_i...

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