Which sourcing strategy is likely to adopt a transactional style?

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

The sourcing strategy that is most likely to adopt a transactional style is multiple sourcing. This approach involves obtaining goods or services from several different suppliers to mitigate risk, ensure competition, and potentially reduce costs. The transactional style is characterized by a focus on short-term relationships, price negotiations, and contract management with suppliers, rather than deeper relationships or long-term commitments.

In multiple sourcing, the emphasis is often on securing the benefits associated with competition amongst suppliers, which aligns with a transactional approach where transactions occur frequently and are based primarily on price or availability. This contrasts with partnership sourcing, which emphasizes collaboration, mutual benefit, and long-term strategic alliances. Single sourcing and dual sourcing also imply a level of commitment that goes beyond transactional interactions.

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