What distinguishes a Single Source Supplier from a Sole Source Supplier?

A Single Source Supplier is recognized as a preferred choice for procurement even in the presence of alternative suppliers. This situation can arise when the supplier offers unique qualities, superior quality, or an established relationship that benefits the purchasing organization, making them the go-to option despite the availability of competitors. This differentiation is significant because it emphasizes the value and trust established between the buyer and the supplier, rather than simply indicating a lack of competition, which is a characteristic of Sole Source Suppliers.

In contrast, Sole Source Suppliers are those from whom a good or service can only be purchased because no alternative exists that can meet the needs or specifications required. This distinction highlights that a Single Source Supplier can still operate in a competitive marketplace but is chosen for various strategic reasons, such as better service, innovative solutions, or higher reliability.

This understanding helps organizations navigate their procurement strategies and emphasizes the qualitative factors influencing supplier selection, rather than focusing solely on cost or market exclusivity.