The administrative cost of maintaining 5,000 suppliers will be dramatically lower than the cost of maintaining a core group of 500 highly qualified suppliers.

Question

Quizplus · Accepted Answer

Maintaining a larger number of suppliers typically increases administrative costs due to the need for more contracts, negotiations, quality checks, and coordination efforts compared to managing a smaller, more streamlined group of highly qualified suppliers.

The Administrative Cost of Maintaining 5,000 Suppliers Will Be Dramatically