Inventory glossary
What is Single sourcing?
Single sourcing is the practice of buying a product or SKU from only one supplier instead of spreading orders across several.
Single sourcing is common for small Shopify stores because minimum order quantities and supplier relationships make it hard to justify splitting orders across multiple vendors for the same product. It can mean better pricing and a simpler reorder process, since you only track one lead time and one set of terms per SKU.
The risk is that if your one supplier runs late, raises prices, or goes out of stock, you have no backup and your store can go out of stock with no quick fix. Owners who single source should watch that supplier's lead time closely and build in extra safety stock to cover delays, since there is no second source to fall back on.
Example
A candle store buys all its glass jars from one supplier in Ohio. That supplier has a lead time of 21 days. When the supplier has a production delay and ships 10 days late, the store has no other vendor to call, so it runs out of jars for 10 days until the order arrives.
Common mistakes
- Treating a reliable supplier as a guarantee against delays, with no safety stock buffer.
- Not tracking that supplier's lead time variability, so late orders catch the store off guard.
- Assuming price or quality will stay the same over time just because there is no comparison supplier.
Single sourcing and SteadyShelf
SteadyShelf tracks each supplier's lead time and flags the order-by date for single-sourced SKUs so you place the reorder before that one supplier becomes your single point of failure.
SteadyShelf is launching on the Shopify App Store. Join early access to get the install link first.
Related terms
Dual sourcing · Supplier · Lead time · Supplier lead time variability · Safety stock
FAQ
Is single sourcing always a bad idea for a small store?
No. It often means better pricing and simpler ordering. It becomes risky only when you have no plan for what happens if that one supplier fails to deliver on time.
How can a single-sourcing store protect itself without switching suppliers?
Hold more safety stock for that SKU, order earlier than the bare minimum lead time suggests, and keep a backup supplier identified even if you do not use them yet.
Let SteadyShelf do this math for every SKU
Order-by dates per supplier, seasonal forecasts and draft POs for your Shopify store. $29/month after a 30-day free trial.
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