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Procurement glossary

What is Award Split?

A procurement strategy distributing a contract among two or more suppliers to mitigate risk or fulfill volume requirements.

Definition

An award split divides a sourcing outcome across more than one supplier rather than awarding the full volume to a single winner - for example 70% to the best bid and 30% to the runner-up.

How it works in practice

A buyer sourcing a critical component awards the majority share to the lowest qualified bid and a minority share to a second supplier. The second supplier stays qualified, tooled and commercially engaged, so an alternative genuinely exists at the next renewal.

Why it matters

Splitting costs some unit price. What it buys is continuity insurance and a live alternative - which is why it appears most often in bottleneck and strategic categories rather than in leverage ones.

Kraljic Matrix guide · Back to the full glossary

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