What are the risks associated with using a single supplier for an item?

Supplier screening, selection, and certifying programs all must be increased. It is essential that you have a contingency plan, as well. If the quality of the product decreases or is not what is expected, the company now has more of the bad product from the firm (single sourcing usually leads to larger volume purchases). The single supplier strategy is susceptible a strike, fire, or internal quality problems.

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