What risk is associated with relying heavily on outsourced suppliers?

Relying heavily on outsourced suppliers can indeed lead to reduced quality control. This is primarily because the company loses direct oversight over the production processes and standards maintained by the suppliers. When goods are produced by third-party vendors, the original company may have less visibility into the quality checks enacted during production. This lack of control can result in inconsistencies and variability in product quality, as suppliers may not adhere to the same standards or practices as the in-house teams. Moreover, if the relationship with outsourced suppliers is not well-managed, there's an increased risk that quality issues may arise without the company being immediately aware, potentially affecting the final product and customer satisfaction.

In contrast, other options present different dynamics that do not accurately represent the risks associated with heavy outsourcing. For example, while increased diversity in the supply chain can be a potential benefit of outsourcing, it does not inherently address the issue of quality control. Similarly, stronger in-house expertise and enhanced negotiation power may result from well-managed relationships with suppliers but do not reflect the risk of diminished quality oversight that comes from relying heavily on external sources.