Implies that the vendor or supplier is the only source or option to buy parts or hire services for a company.
The reason for sole-sourcing could be:
• In purchasing, it maybe that the suppliers involved are the only ones that have the material, either because they are the only manufacturer or because they have the patent.
• In services, the supplier has the expertise and/or the resources and the skills necessary for the service required that no other company has.
• The other reason for sole-sourcing could be, when tooling expenses are too high to maintain dual-sources across the supply chain