Question

explain the benefits of using a single supplier as opposed to multiple suppliers

Answer 1

Having a single supplier has its pros and cons. The advantage of buying from a single supplier can be considered to be:

QUANTITY DISCOUNTS
Being able to order large quantity from a single supplier would allow the supplier to provide a better price point to our business and in turn, we can save a large amount of capital expenditure in the procurement of the inventory.

BETTER SUPPLIER RELATIONSHIP
Better relationships can be maintained with the supplier much easier because the company has to deal with only a single supplier, which makes the supplier feel valued. And therefore, the supplier provides the businesses with better offerings, lesser constraints and faster access to any new additions.

DECREASE IN LEAD TIME
When there is a hinge supplier, the business can create its processes around the supplier’s operations, considerably reducing logistical errors and therefore lead time.

STAFF TRAINING
Being able to make decisions would become more manageable when there is a single supplier. The employees would, therefore, find it easy to deal with a single supplier and provide free support for them.

STREAMLINING THE BUSINESS PROCESS
Having a single supplier means the easier implementation of the different processes the company conducts, making it easy to create a better operations plan and execute it.