10/08/2026
Dual sourcing is also not as simple as having two suppliers.
A 90/10 split may technically provide a second source, but if that supplier can't rapidly scale when the primary supplier has a problem, the "backup" may not be much of a backup.
The question you should be asking is "How quickly can we move meaningful volume if something goes wrong?"
That's where strategic sourcing becomes much more than price negotiation.
Design-to-value, specification optimization, supplier collaboration, geographic diversification, standardization and should-cost analysis can all reduce cost while simultaneously improving resilience.
For example, reducing material usage by 10% doesn't just save money. It also reduces exposure to that material, transportation requirements, inventory and potentially the number of suppliers needed to support the business.
Resilience is ultimately about optionality.
Where should we source?
How much capacity should we maintain?
Which suppliers should be strategic?
Where does redundancy make financial sense?
Where is a premium worth paying?
And where are we simply adding cost without meaningfully reducing risk?
Nathaniel Tuttle, Director of Sourcing for HCS, the Concordance private label brand, believes healthcare sourcing leaders will place an even bigger emphasis on resilience, quality, reliability and risk mitigation rather than on cost alone.
The lowest-cost supply chain isn't necessarily the most competitive.
The most competitive supply chain is the one that can control cost, absorb disruption and adapt quickly.
That's where procurement can create some of its greatest value.
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