Dual sourcing has become a favored approach for companies looking to navigate today’s supply chain challenges. Also called double sourcing, dual sourcing involves using two suppliers for a product, as opposed to relying on a single resource – or sole sourcing – for manufacturing.
With events like the U.S. China trade war and the COVID-19 pandemic disrupting the supply chain, supplier security has become a high priority. Customer standards have risen with the increase in product availability over the past several years, so it is more important than ever that companies contract out to reliable sources to reduce costs and speed up the product-to-market timeframe. Tusco recognizes the value of dual sourcing services for custom display manufacturing in 2021 and the benefits it can bring to clients.
ADVANTAGES OF DUAL SOURCING
In the current supply chain climate, dependance on only one supplier can be a risk with weather, shortages, and political concerns impacting production and shipping delays. Dual sourcing negates many of these issues, allowing companies to strategically use suppliers as needed if one or the other is experiencing holdups or process changes.
Dual sourcing has many advantages, including benefits that help you:
Avoid single supplier dependence
Using only one supplier runs the risk of becoming too indebted to them, which may increase prices. Dual sourcing lessens the power held by one single company.
Gain more flexibility and security
If one supplier is involved in manufacturing issues or shipping delays, dual sourcing provides a backup plan so that your supply chain is not disrupted.
Grow capacity for product demand
Sometimes customer demand increases, but a single source supplier cannot keep up with the manufacturing needs. In these cases, a secondary source can help meet the extra demand.
Establish cost and negotiation flexibility
When working with multiple companies, you can continue operations while vetting additional partners. This allows you to choose the right fit for your company and budget – not just the fastest fit.
Create safer risk distribution
Using the same approach as “don’t put all your eggs in one basket”, dual sourcing provides a layer of security in case of unavoidable supply chain delays.
Setting up for Success
Dual sourcing offers opportunities for reducing risk and providing flexibility and cost efficiency. The advantages of dual sourcing enhance Tusco’s ability to work quickly, delivering products in a mere matter of weeks instead of months.
Contact one of our experts today about how we can best serve your display needs. Call us at 740-206-8298 or reach out online for answers to your custom display manufacturing questions!