Single sourcing advocates may want to address the following issues regarding long-term impacts of single sourcing. In the long-run, if everyone reduces their supplier base, there will be fewer suppliers to deal with and overall competition will decrease as there are fewer suppliers. A supplier consolidation will give suppliers less power in the long run.

Question

Quizplus · Accepted Answer

Supplier consolidation can actually give remaining suppliers more power in the long run, as they become fewer in number and potentially more integral to the purchasing companies, possibly leading to less competition and higher prices.

Single Sourcing Advocates May Want to Address the Following Issues