Single sourcing consolidates purchase volume with a single supplier in hopes of increasing cooperation and communication in the supply relationship as well as ____.

Question

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Single sourcing is often used as a strategy to negotiate lower costs per unit by consolidating purchase volume with a single supplier. While it may also improve cooperation and communication in the supply relationship, it does not necessarily lead to greater supply risk mitigation or increased competition. However, it can result in improved market intelligence due to the closer relationship with a single supplier.

Single Sourcing Consolidates Purchase Volume with a Single Supplier in Hopes