A multi-vendor strategy is when a business strategically purchases the same services from different vendors. This preemptive hedging approach can be applied throughout a company’s business ecosystem.

One of the benefits of this multi-source purchasing game plan is risk mitigation. This way, if one vendor has a challenge with deliverables, it will have less of an impact on business operations. This also allows businesses to quickly pivot and adapt in order to stay competitive. This strategic redundancy in the purchasing of services ensures that at least one vendor will be able to provide uninterrupted service to a companies clients. Another benefit to this approach is the ability to negotiate with multiple vendors to help ensure competitive pricing.

Finally, developing relationships with multiple vendors can greatly assist a company with service quality and scaling solutions. Although this preemptive hedging approach requires a front-loaded effort to identify and vet all the desired service providers, in the long run, it can empower company’s to scale and grow more efficiently.