A disadvantage of the "few suppliers" sourcing strategy is:
A) the risk of not being ready for technological change.
B) the lack of cost savings for customers and suppliers.
C) possible violations of the Sherman Antitrust Act.
D) the high cost of changing partners.
E) the suppliers are less likely to understand the broad objectives of the procuring firm and the end customer.

Question

Quizplus · Accepted Answer

The disadvantage of the "few suppliers" sourcing strategy is the high cost of changing partners because of the close relationship established with the supplier. This makes it difficult for the procuring firm to switch to another supplier, especially in cases where the supplier is considered to be a partner in innovation and product development.

A Disadvantage of the "Few Suppliers" Sourcing Strategy Is