What are the two strategies for dealing with suppliers, and what are t

QUESTION

What are the two strategies for dealing with suppliers, and what are the reasons behind each?

What will be an ideal response?

ANSWER

Answer: The first strategy is to use many suppliers. The reasoning is that if one of them fails to have the product available or charges too high a price, another will be able to deliver the resources when you want them and at the right price. The second strategy is to use a few trusted suppliers. The reasoning is that there will be more reliability and less likelihood that proprietary secrets will be revealed.
Explanation: The first strategy is to use many suppliers. The reasoning is that if one of them fails to have the product available or charges too high a price, another will be able to deliver the resources when you want them and at the right price. The second strategy is to use a few trusted suppliers. The reasoning is that there will be more reliability and less likelihood that proprietary secrets will be revealed.