An alternate supplier is exactly what it sounds like: a second, vetted source for a part or material you regularly use. You don’t need to split your orders 50/50 with them every week—but you do need to know they can deliver when it matters most. This approach can turn an unexpected disruption into a manageable hiccup rather than a full-blown crisis.
Let’s look at three key reasons why adding alternate suppliers strengthens your supply chain resilience:
When a supplier unexpectedly goes down—due to anything from a factory fire to a raw material shortage—your production can come to a standstill. If you don’t have a second source already in place, it takes valuable time to find, vet, and onboard someone new. That delay can ripple through your operations and cause missed deadlines, lost revenue, or strained customer relationships.
Having a qualified alternate supplier gives you a faster response time. For the alternate supplier to be ready to ramp up quickly if your primary source fails, you need to order from them regularly. Maybe your primary supplier delivers 75% of your stock with the alternate managing the other 25%. The goal is to know they can deliver a quality product. Then it’s just about increasing the quantity when you need it.
Market conditions change fast—prices spike, transportation routes get disrupted, or new regulations shift what you can import or export. A single-source strategy limits your ability to adapt. With multiple suppliers in your network, you gain more control over your cost structure and your ability to respond to change.
Flexibility also strengthens your negotiating position. When you’re not locked into one vendor, you have more leverage in pricing and terms discussions.
Customers expect consistent delivery, regardless of what’s happening behind the scenes. What you see as a disruption in your supply chain, they experience as a point of frustration. Late deliveries can damage your credibility, lead to penalties, or jeopardize future orders.
Having alternate suppliers increases your ability to meet deadlines and avoid disappointing key accounts. It’s a proactive investment in customer satisfaction.
Building a network of reliable alternate suppliers doesn’t happen overnight—but it also doesn’t have to be overwhelming. Start by identifying your most critical parts and single-source dependencies—especially for critical materials or components that could shut down your operation. From there, begin researching and vetting alternative sources. It’s important to test these suppliers in advance with occasional orders or sample runs. Once you know they’re capable, give them regular orders to keep the relationship strong.
If that seems overwhelming or too time-consuming, consider working with a partner who can help you find and qualify alternate suppliers. At MAGNET, we specialize in helping Northeast Ohio manufacturers strengthen their sourcing strategies and reduce risk.
Need help building supply chain resiliency?
Talk to MAGNET about how to reduce your sourcing risk, increase flexibility, and protect your business from disruptions.
If you want to take a broader look at your supply chain, consider MAGNET’s Supply Chain Resiliency Assessment. For a limited time, we’re offering the assessment for just $500 (valued at $2,000) for Northeast Ohio manufacturers who qualify. It’s a low-cost, high-impact opportunity to bring your leadership team together and focus on what matters most.
Ready to uncover the gaps you can’t see? Schedule your assessment now.
Bass Khoury is the Director of Operations Excellence at MAGNET. He brings over 20 years of experience leading lean transformations and continuous improvement initiatives.