Excel Computers produces the world's best computers.It has a sophisticated R&D division that develops computers that have the latest features that consumers can enjoy.Quality standards at Excel Computers are strict and the company uses only the best raw materials to assemble each computer it produces.In its attempts to source the best raw materials,the company has associated with 32 suppliers spread across 14 nations.Computer chips,an integral part of any computer,are procured exclusively from a supplier in China.Excel Computers has obtained an approval for this no-bid contract from the government and secured the supply from any changes caused by competing suppliers.Excel Computers has resorted to _____ with regard to its supply of computer chips.

Question

Quizplus · Accepted Answer

Sole sourcing has become more popular because organizational buyers have become more concerned with quality and timely delivery and less likely to purchase only on the basis of price. Sole sourcing is advantageous for suppliers because it provides them with predictable and profitable demand and allows them to build long-term relationships with organizational buyers.

Excel Computers Produces the World's Best Computers