Single sourcing is used to ensure a degree of competition and guarantee the possibility of a backup should a source fail to deliver.

Question

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Single sourcing means relying on only one source for a particular product or service. It does not ensure competition or guarantee a backup source. In fact, it leaves the company vulnerable to disruptions if the sole source fails to deliver. Using multiple sources, on the other hand, promotes competition and provides a backup option in case one source fails.

Single Sourcing Is Used to Ensure a Degree of Competition