Suppliers are more likely to stay price competitive when the purchasing company uses single sourcing than when it uses multiple sourcing.

Question

Quizplus · Accepted Answer

Suppliers are more likely to stay price competitive when the purchasing company uses multiple sourcing, as they know they are competing with other suppliers and must keep their prices competitive to win the business. Single sourcing can potentially lead to a lack of competition, which can result in higher prices from the supplier.

Suppliers Are More Likely to Stay Price Competitive When the Purchasing