This approach is very similar to that of single sourcing in that there is one vendor. However, sole sourcing implies that there is a monopoly supplier who is the only supplier of a particular product or material. It is likely that this company will be extremely innovative and at the forefront of a technology. Commercially, they are also likely to be in a strong position. From a customer’s perspective the problems are similar to those of single sourcing because they are dependent on one supplier.