Crosssupplier

Crosssupplier is a procurement and supply chain strategy that involves sourcing goods or services from multiple suppliers for the same item or category, rather than relying on a single primary supplier. The approach aims to reduce supply risk, increase competition, and improve resilience by distributing dependence across several sources.

In practice, crosssupplier arrangements can be used for components, raw materials, or services that are interchangeable or have standardized specifications. It often involves spend analysis to identify critical categories, supplier segmentation to determine suitable partners, and formal contracts or framework agreements that set expectations across suppliers. Technology such as supplier relationship management systems and e-procurement platforms can help coordinate orders, track performance, and harmonize data from multiple vendors.

Benefits of crosssupplier include reduced risk of disruption due to supplier failure, improved pricing and terms through competitive pressure, shorter lead times, and greater flexibility in capacity management. It also supports continuity planning by enabling alternative sources during shocks or geopolitical events. However, the approach can introduce higher administrative complexity, longer lead times for consolidation, potential variability in quality, and increased coordination costs. Managing multiple suppliers also requires robust supplier performance management and clear communication of requirements and standards.

Implementation considerations include selecting appropriate categories for crosssupplier, establishing clear sourcing rules, aligning on quality and compliance standards, and designing contracts that address performance, intellectual property, and change management. Metrics commonly tracked are on-time delivery, defect rate, total cost of ownership, and supply continuity.

Related concepts include multi-sourcing, dual-sourcing, and supplier diversification. Crosssupplier is most effective when aligned with overall risk management and category strategy.