What does "dual sourcing" refer to in the context of BCP?

Dual sourcing in the context of Business Continuity Planning (BCP) refers to the strategy of utilizing multiple suppliers to safeguard against potential supply chain disruptions. This method helps organizations reduce their dependency on a single source for critical resources, thus enhancing resilience. By engaging more than one supplier, a company can ensure that if one supplier fails to deliver due to unforeseen circumstances—such as a natural disaster, political instability, or other operational challenges—there is an alternative supplier ready to fulfill the requirements. This approach is crucial in maintaining the continuity of operations and minimizing the impact of supply chain disruptions.

The other options reflect different sourcing strategies, but do not capture the essence of dual sourcing. Relying on a single supplier creates a vulnerability, while sharing suppliers with competitors does not necessarily enhance resilience and may introduce complications. Therefore, the core idea of dual sourcing is about actively diversifying supplier relationships to better mitigate risks associated with the supply chain.