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Choosing a specific company and bypassing the competition refers to single sourcing. Different suppliers and distributors typically produce and sell similar merchandise. This is advantageous to companies that purchase supplies because they can choose among various companies. However, after a thorough analysis of possible suppliers, company heads, managers or owners may choose to sign with a single company and pass up the opportunity to work with other suppliers. This decision could be based on price or the quality of products.
Sole-sourcing contracts vary from single-sourcing contracts. With single sources, companies weigh their options and then choose a supplier that meets their needs. With sole sourcing, there are no options. Companies may search for multiple suppliers and distributors for a product or service, then discover only one vendor is capable of producing the product.
The sole source contract is the only source that can supply a particular item.The single source contract that you choose a supplier among other competitors for justifiable reason.
Single-source contract
is one in which the supply of product or service is awarded to a selected vendor or service provider without conducting competitive bidding. Oftentimes, this case happens due to time constraints as there is no more time to conduct bidding process.
is one in which the supply of product or service is only available from one Company because it is the only one that can supply the needed product or service in a particular time when that product or service is needed. After exhaustive search and sourcing, only one Company is ready to supply. This case may not be due to time constraints but may also happen due to the equipment spare parts (for example) needed are almost phased out in the market or particular specilaty service is very hard to find. Hence, prices are high due to the absence of competitors.
Single source: is the source who has particular items available in stock and others do not have it or has only quoted for the required items and others did not.
Sole source: can be called as a agent/agency for the required products, which others do not have, or does not deal in.
