What is the best reason for retailers to develop and maintain relationships with multiple and sometimes competing suppliers?
A) Buyers need to always have a way to cut and move on to better vendors without a break in the supply chain
B) A function of retailers is to provide assortments, so they must deal with a variety of suppliers
C) By working with multiple suppliers, retailers tend to make better negotiators
D) A variety of vendors assures more buys on behalf of the retailer
E) A buy should never be contracted with a sole supplier

Question

Quizplus · Accepted Answer

Retailers need to offer a variety of products to their customers, and to do so, they need to work with multiple suppliers. Maintaining relationships with multiple suppliers enables retailers to diversify their offerings and reduce the risk of supply chain disruptions.

Answer: A
 Having multiple suppliers provides a backup plan for retailers in case one supplier falls short. This enables retailers to switch to other vendors without a break in the supply chain, making the business processes more efficient.

Answer: C
 When working with multiple suppliers, retailers gain bargaining power as they can leverage competition to negotiate better prices and terms. Retailers can encourage suppliers to offer competitive pricing, faster shipping, and other benefits that help their business.

Therefore, the reasons for retailers to develop and maintain relationships with multiple suppliers are to provide a variety of products to customers, ensure supply chain continuity, and become better negotiators.

What Is the Best Reason for Retailers to Develop and Maintain