Which is NOT one of the three main sourcing arrangements?

The correct response, indicating that "collaborative sourcing" is not one of the three main sourcing arrangements, is based on the established categorization of sourcing strategies in procurement.

Single sourcing, dual sourcing, and multiple sourcing are recognized as essential types of sourcing arrangements.

• Single sourcing involves relying on one supplier for a specific product or service, which can lead to strong supplier relationships and potential cost benefits, but also carries risks of dependency.

• Dual sourcing refers to the practice of sourcing from two suppliers for the same product or service. This approach is beneficial for risk mitigation, ensuring that if one supplier faces issues, the other can continue to fulfill the need.

• Multiple sourcing entails engaging several suppliers, which provides flexibility, competition, and security against supply chain disruptions.

On the other hand, collaborative sourcing, while it can describe certain operational practices among organizations or suppliers, does not fit neatly into the primary categorization of sourcing arrangements in procurement literature. Collaborative sourcing typically focuses on partnerships and shared goals between organizations but is not recognized as one of the foundational strategies in the context of sourcing options. Thus, it distinguishes itself from the more commonly defined sourcing arrangements.