A Winning Strategy Game Managing Strategic Source Diversification with SAP

Multi-Source Management

In these turbulent times, many organizations are making a strategic shift away from single-source environment for key materials and for good reason. A more diverse supply base means you are less dependent on any single source of supply. That leads to a more competitive marketplace and an increased possibility that we will be able to keep our customer promises, particularly when supply is constrained. When there is sufficient volume to be shared, multi-sourcing is a strong tool to have in the toolkit because knowing that there are options inherently places us in a better place to negotiate. And the recognition that there is volume on the table provides sources with incentives to strive for excellence.

However, multiple sources can also mean multiple headaches due to the complexity of efficiently executing the sourcing strategy that you’ve worked so hard to build. In fact, we’ve seen several customers this year who have tried using a unique material number per source with the goal of quickly providing a landing place for their new diversified supply base. Certainly, it is far from easy—the sharing of information, the slippery slope of adjusting inventories to make things easier for components used in the manufacturing run and the constant overall maintenance and upkeep. No one needs to add more headaches.

Connect

Discover where and when to connect with Reveal at upcoming webinars and industry events.

MasterClass SAP Supply Chain Bootcamp - Virtual

Nov 2, 2022
Nov 4, 2022
8:30 AM - 12:30 PM CST
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NASCES22 N. American Supply Chain Executive Summit

Sep 12, 2022
Sep 14, 2022
Chicago, IL
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SAPinsider Supply Chain Management 2022

Jul 21, 2022
Jul 22, 2022
Bellagio, Las Vegas, NV
Find out more
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