1.3Sourcing: supplier search
The essentials in 30 seconds
- Sourcing = several credible candidates: without alternatives, no competition and no leverage.
- Proportionate qualification: from light check to full dossier by criticality.
- Live panel: bring candidates in even when all is well, remove failing ones.
Running mini-case — Nadia qualifies a second source
Nadia imports her packing carton from a single supplier: without cartons, dispatch stops. She spots two candidates via a trade fair and a recommendation, tests a sample then a small batch. When her supplier announces a shipping delay, the second source takes over with no disruption and keeps pressure on prices.
Sequel to cases 1.1-1.2 — Nadia secures the critical item before the crisis.
1. Where to look: underrated sources
Classic channels remain effective: directories and pro databases, trade fairs (compare on site), federations, trade press and online search, including B2B marketplaces for import.
Two underrated sources: recommendations from your network (a non-competing peer tells you who is reliable in reality) and your current suppliers who point to a specialist for what they don't do.
Goal is not to find a supplier, but several credible candidates: without alternatives, no real competition.
2. Qualify to the stake
Qualifying means verifying ability to deliver conformingly and sustainably. For a routine purchase: legal existence, seniority, reviews, sample. For a strategic supplier: financial health, contacted references, capacities, certifications, audit if needed.
Commercial promises are not proof. Proportionate qualification avoids both naivety (taking word for it) and heaviness (auditing for a minor purchase).
All qualified suppliers form the panel per purchase family. A live panel is maintained: new candidates are brought in even when all is well, failing ones are removed.
3. Trade-offs: single/multi and local/distant
Single sourcing simplifies and concentrates volumes (better price, deeper relationship) but creates dependence. Multi-sourcing secures and keeps competition alive, but disperses volumes and burdens management.
The local vs distant trade-off is not judged on unit price: distant often cheaper imposes high MOQs, long lead times, transport, customs and higher risk. TCO and criticality decide.
Best practice: qualify a second source for critical items before you need it, and keep permanent watch (even without immediate need) on high-stake families.
🔎 Concrete example — Second source qualified before the crisis
An SME single-sourced on a critical part qualifies a second supplier at 30% volume: sample, small test batch, light audit. When the main supplier announces 8 weeks delay, switch is immediate.
Cost: a bit more management and average price slightly above pure single sourcing.
Gain: continuity ensured and permanent competitive pressure that keeps prices in check.
Section vocabulary
- Sourcing
- Search, identification and qualification of potential suppliers; aims for several credible candidates.
Simple example: Nadia spots two carton makers via a fair and a recommendation.
What it is not: settling for the historic supplier with no alternative.
Reflex: for each high-stake family, one new candidate spotted per year.
- Qualification
- Verification of ability to deliver conformingly and sustainably, proportionate to stake.
Simple example: sample then small test batch before committing carton volumes.
What it is not: believing commercial promises on trust.
Reflex: no volume without proof: sample then limited batch.
- Supplier panel
- Set of qualified suppliers per purchase family, maintained continuously (entries, exits, watch).
Simple example: two qualified carton makers with 70/30 shares and tested switch.
What it is not: a frozen panel that never moves.
Reflex: bring a candidate in even when all is well.
- Single / multi-sourcing
- Single source (simplicity, dependence) vs multiple sources (security, heavier management).
Simple example: Nadia keeps the main at 70% and the second source at 30%.
What it is not: putting everything with the cheapest with no safety net.
Reflex: on the critical, always one qualified second source.
- B2B marketplace
- Platform connecting professional buyers and suppliers; useful for scouting, without exempting qualification.
Simple example: Nadia spots an exporter there, then qualifies them like the others.
What it is not: ordering bulk volumes off a simple online listing.
Reflex: the marketplace scouts, qualification decides.
In practice — Build and secure your supplier panel
- For your main purchase family, list current suppliers then identify 2-3 new candidates (directories, fairs, recommendations, marketplaces).
- Qualify each candidate to the stake: legal existence, seniority, references, sample or small test order.
- Assess your dependence: what percentage rests on a single supplier? What if they disappeared tomorrow?
- For critical single-sourced items, start qualifying a second source before you need it.
Ready-to-say script — ask for references (30 s)
“Thanks for your offer. Before going further, can you give me two comparable customers I can call, and send a sample? We always qualify a small batch before committing volumes.”
Say to every new candidate; actually call the references — it is the most instructive step.
Copy-paste template — express qualification sheet
SUPPLIER: _______________ | PURCHASE FAMILY: _______________
EXISTENCE / SENIORITY CHECKED: _______________
REFERENCES CONTACTED (who, feedback): _______________
SAMPLE / TEST BATCH (result): _______________
CRITICALITY (stops if stockout? yes/no): _______________
DECISION (panel yes/no + volume share): _______________Small business / tight budget
Light qualification: trade register, two customer opinions, sample — no costly audit.
Algeria SME
For imports: check export track record, MOQ, real sea lead time and references already delivered in Algeria.
Critical item
Two qualified sources (e.g. 70/30) with switch tested before the crisis.
Routine purchase
Assumed simple single sourcing, with periodic re-tendering rather than a heavy panel.
✓ Best practices
- Always ask for customer references and contact them: it's the most instructive and least practised step.
- Test in small batch before committing volumes: series production reveals true level, not showcase sample.
- Do watch even when all is well: it's when you don't need that you search serenely.
✗ Common pitfalls
- Settling for a single candidate for lack of time: without alternative, you have no price information and no leverage.
- Believing promises without proof: unverified certifications and polished samples don't prove series.
- Judging distant only on unit price: MOQ, lead times, customs and risk often reverse the calculation.
Key takeaways
- Aim for several credible candidates: without alternatives, no competition.
- Qualify to the stake: from light check to full dossier by criticality.
- Panel is maintained continuously: entries, exits, permanent watch.
- Single vs multi and local vs distant are decided on TCO and criticality, not price alone.
48h Challenge — apply tomorrow
List your suppliers for 1 purchase family, spot single-source dependence and identify 1 new candidate to qualify (recommendation, fair, B2B marketplace). First contact sent within 48h.
- I can name three sourcing channels and two qualification proofs.
- I have spotted my main single-source dependence.
- I have contacted (or scheduled) a new candidate.
Frequently asked questions
Do we need several suppliers for each item?
No: systematic multi-sourcing costs too much. On critical items (activity stops if stockout) → two qualified sources (e.g. 70/30). On high-stake but competitive market → assumed single sourcing with periodic re-tender. On routine → simple single sourcing.
How to qualify an unknown supplier, especially abroad?
Check legal existence and seniority, accessible financial health, contacted customer references, certifications verified with body, sample then small test order. For import, sample is showcase: only first limited series reveals reality.
What is the primary goal of sourcing?