Second source

The term second source (English for second supplier ) one or more alternative suppliers for a product referred to in the materials management and production business, which is identical and compatible with any other product.

Term originating

The term has its origins in the English military logistics. Here at least one spatially independent second production facility for the corresponding good to be procured is required for the case of the military authorities that the original producer can not provide. From there, he found his way into the civilian economy and research in the local language area. In the course of Anglicization and internationalization it found its way into the German business language.

Term use

The term is mainly used in large, internationally operating companies to just-in -time production.

Connotations

The requirement for an existing second source, ie the use of at least one other manufacturer / supplier for a specific commodity in addition to the original manufacturer, the risk of unavailability of the product is to be reduced, if a manufacturer is no longer able to deliver.

In addition to identical license products for this purpose are also functionally identical products from other manufacturers into consideration if they meet the requirements.

Parts which do not meet the quality requirements are not considered as a second source, since they are not used in the sense of the original product.

Benefits

• With multiple suppliers, a better basis for negotiation for the buyer, since he can compare at least two offers, and manufacturers are competing against each other, since there is no monopoly on the product is available.
• Avoid production downtime.

Disadvantages

• The result is a higher inspection and testing, but if admission tests and calculations are necessary several times.

Examples

• The computer drives of IOmega you can also from other manufacturers (often in a different color ) will receive:

• For the hard biscuits Bundeswehr there are at least two suppliers. One in the Netherlands, the other in Italy. During the first product tastes sweet, the second is salty in taste.

• The " Swiss Army Knife " was produced by both Victorinox and Wenger. ( Wenger was later acquired by Victorinox. )