Meaning
Supply chain risk management procurement strategy splits component volume between two independent manufacturing vendors to guarantee continuity. Implementing dual sourcing requires establishing identical technical specifications, tolerance limits, and quality acceptance protocols across both production sources. The strategy governs procurement resilience for critical RF modules, microcontrollers, and precision cast plates.
Application limits exist where tooling costs or low production volumes make maintaining a second source financially unviable.
Qualification Burden
Independent vendors must pass separate first-article inspection routines before entering mass production. Managing dual sourcing requires tooling validation, process capability audits, and identical raw material origin checks for both suppliers. Gerber files, mechanical drawings, and test scripts mandate strict configuration control.
Engineering change orders require parallel sign-off from both manufacturing facilities.
Volume Split
Order distribution typically follows a 70-30 or 60-40 percentage allocation to maintain production line readiness at both sites. Contracting dual sourcing ensures the secondary supplier holds active capacity to absorb full volume if the primary supplier experiences disruption. Yield monitoring compares defect rates between sources.
Price competition between vendors controls unit production cost drift.
Risk Mitigation
Operational disruptions at one factory do not halt main assembly line throughput. Geographic separation protects delivery schedules from regional power outages or natural events.