A manufacturer that wants to make sure that suppliers do not become complacent should use multiple sourcing.

Question

Quizplus · Accepted Answer

Multiple sourcing involves using more than one supplier for the same product or component, which creates competition among suppliers and encourages them to continually improve their quality, pricing, and delivery. This reduces the risk of a single supplier becoming complacent or taking advantage of the purchasing company. Therefore, multiple sourcing is an effective strategy for avoiding supplier complacency.

A Manufacturer That Wants to Make Sure That Suppliers Do