Supplier size does become a factor where one firm decides to leverage its purchases from one or a few suppliers.

Question

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When a firm decides to leverage its purchases from one or a few suppliers, the size of the supplier does become a factor as it affects the stability, reliability, and quality of the supplies being received. A larger supplier is usually better equipped to handle the volume of orders and may have better resources and technology to ensure timely and consistent delivery of high-quality supplies. On the other hand, a smaller supplier may struggle to meet the demands of a large purchaser and may not have the same level of quality control processes in place. Therefore, supplier size becomes an important consideration for firms looking to leverage their purchases from a small number of suppliers.

Supplier Size Does Become a Factor Where One Firm Decides