What is a primary reason for using multiple sourcing?

Enhance your understanding of CIPS Ethical and Responsible Sourcing. Use flashcards and multiple choice questions to prepare. Get ready for the CIPS exam!

Using multiple sourcing primarily aims to guarantee a constant supply. This strategy allows organizations to mitigate risks associated with relying on a single supplier. A single source can introduce vulnerabilities such as supply disruptions due to factors like natural disasters, strikes, or other unforeseen circumstances. By engaging multiple suppliers, a company can create a buffer against these risks, ensuring that if one supplier encounters problems, others can step in to maintain the flow of goods and services.

The approach not only enhances supply chain resilience but also helps maintain consistent production schedules and customer service levels. This can be especially critical in industries where demand is variable or where the supply chain is complex. Aunque using multiple sources can enhance relationships and reduce costs, the primary focus is on maintaining a reliable and uninterrupted supply.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy