SpendEdge, a leading provider of procurement market intelligence solutions, has announced the completion of their latest article on gaining deep-dive insights into second sources to mitigate supply chain risks and reduce the impact of COVID-19.
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Companies are working hard to assess the impact of COVID-19 and address supply chain disruptions caused by the outbreak. They must analyze possible outcomes in the context of known supply chain risks to take effective measures that can minimize exposure to future disruptions. Reducing production to adjust to declining orders from suppliers is not the ideal way of navigating through the crisis. Companies must maintain relationships with more than one supplier through second sourcing to mitigate supply chain risks.
At SpendEdge, we understand that finding alternate or second sourcing options is crucial for companies. And to help companies better understand, we have highlighted the benefits of second sourcing for companies.
Benefits of Second Sourcing for Businesses
Companies having single source are facing numerous supply chain risks due to the outbreak of the COVID-19 pandemic. Suppliers are failing to deliver raw materials and commodities, thereby, making it difficult for companies to gain profits and retain customers. Identifying another supplier in such crisis will compel companies to pay hefty sums to get replacement supplies. Developing a second sourcing strategy helps companies to obtain raw materials during supply chain disruptions.
Want to identify alternate suppliers and improve second sourcing to mitigate supply chain risks and manage the impact of COVID-19? Request a free proposal to gain insights into our customized solutions.
Usually, second sourcing is considered as a cost-consuming process by companies. But conducting a realistic evaluation of the total cost of ownership can lower costs significantly. Companies can easily prevent monopolies that are responsible for higher prices. Second sourcing also prevents a single vendor to have too much leverage in the purchasing relationship. It also drives competition among suppliers and helps companies achieve extra benefits from suppliers. To know cost benefits of second sourcing and analyze the impact of COVID-19, get in touch with our experts now!
Driving innovation in suppliers is imperative for companies to sustain market share during a crisis. Second sourcing introduces competition and drives suppliers to offer better innovations, meet additional supply demands, and differentiate themselves from other suppliers. This helps companies to scale production and keep up with the increasing consumer demand. Single sourcing does not offer such benefits and increases the possibility of supply chain risks.
To minimize the impact of COVID-19 and mitigate supply chain risks, reach out to our analysts now!
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SpendEdge shares your passion for driving sourcing and procurement excellence. We are the preferred procurement market intelligence partner for 120+ Fortune 500 firms and other leading companies across numerous industries. Our strength lies in delivering robust, real-time procurement market intelligence reports and solutions.
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