Second source

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With the term second source (Engl. For second supplier ) in materials management and production management are referred to one or more alternative suppliers for a product that is identical and compatible with another product.

Origin of the term

The term has its origin in the English-language military logistics. The military requires at least one spatially independent second production site for the corresponding goods to be procured in the event that the original producer can no longer deliver. From there it found its way into the civil economy and research in the local language area. In the course of Anglicization and internationalization, it found its way into the German business language.

Use of terms

The discontinuation or unavailability of a component that is necessary for the production of a device poses a serious threat to companies. That is why it is now almost mandatory that there is either a second source for all purchased parts and / or that the supplier reliably expires components announces in advance and enables a last order .

Conceptual content

The requirement for an existing second source , i.e. the use of at least one other manufacturer / supplier for a specific asset in addition to the original manufacturer, is intended to reduce the risk of the product being unavailable if a manufacturer is no longer able to deliver.

In addition to structurally identical licensed products, functionally identical products from other manufacturers can also be considered if they meet the requirements.

Parts that do not meet the quality requirements are not considered second source because they cannot be used in the sense of the original product.

advantages

  • With several suppliers there is a better negotiating basis for the buyer, since he can compare at least two offers, and the manufacturers are in competition with one another, since there is no monopoly for the product.
  • Avoidance of production downtime.

disadvantage

  • There is a higher examination and test effort if approval tests and calculations are necessary more than once.

Examples

  • The IOmega computer drives can also be obtained from other manufacturers (often in a different color):
ZIP-100 external, parallel: from Epson;
ZIP-100 internal, IDE: from NEC;
JAZ, SCSI: from LaCie ;
  • There are at least two suppliers for the hard biscuits used by the Bundeswehr. One in the Netherlands, the other in Italy. While the first product tastes sweet, the second is salty.

Individual evidence

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