When a Single-Source Procurement Is Justified & When It Isn't

I learned one of my biggest procurement lessons on a project where a single component was delaying everything. The team insisted we use one supplier; the “only one” who could meet our timeline. It felt like a typical single-source situation, so we went ahead.

Two days later, the supplier called:

“There’s been a technical issue. Delivery will be delayed.”

Panic everywhere. And suddenly, Procurement was the problem.

While everyone worried, I quietly checked the market again… and found two alternative suppliers who could deliver faster than our “only option.” We split the order, saved the project and I walked away with one clear truth:

Single-source isn’t the issue, assumptions are.

When Single-Source Is Justified:

✔️ Unique technology or patented solutions.

✔️ Very high quality or safety risks.

✔️ Switching costs that are too expensive.

✔️ Extremely tight timelines with confirmed market checks.

✔️ Long-term strategic supplier relationships.

When It’s Not Justified:

❌ “We’ve always used them.”

❌  No market research.

❌  Rushed timelines caused by poor planning.

❌  Supplier complacency or dependency risks.

That project taught me something I repeat often: “Procurement always has options; if we take the time to look.”

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