ˈmʌl.ti ˈsɔhrs.iŋ / Multisourcing


Multisourcing is the practice of working with more than one service provider or manufacturer to fulfill demand.The sources of supply are often competitors. Multisourcing allows a company to collaborate with these suppliers to spread a significant volume of demand among the various contractors.Businesses commonly practice multisourcing to accommodate high demand. When a service provider or a manufacturer cannot meet the order capacity, a company can tap a second or a third supplier to satisfy their needs.Multisourcing has two primary models: prime contractor and client. In the former, a prime contractor takes over the management of the participating suppliers. On the other hand, the latter allows the client to engage various contractors based on their respective core competencies.

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