A single source part means that only one manufacturer makes/supplies a product or service you are sourcing. Relying on single sourcing exposes your supply chain to the possibility of not being able to get electronic components if the supplier’s operations are disrupted. Common drawbacks of this strategy include increased vulnerability of supply and increased risk of supply interruption.
How can single-sourced parts affect your commodity risk?
If there is only one supplier for your electronic components, it is more challenging to ensure that they keep their company competitive. In addition, single-source parts pose a significant risk to the manufacturers’ profitability. If there is a supply line disruption, it can cause the inability to fill orders, increased warehousing costs as products and parts back up, and cuts in revenue as deliveries are missed.
Get ahead of your manufacturing risks using Lytica’s SupplyLens™ Pro platform that identifies single-source risk and enables unprecedented levels of cost reduction for the world’s leading electronics companies.