Everyone has their own opinions on the best way to source their companies outside needs, even within our organization some people prefer one vendor while others line up as many as possible. What works best in your line of business?
I think that any company that single sources is doing a disservice to their company. Competition is good. While there may be economies of scale to be leveraged with single sourcing, the cons outweigh the pros.
Why not always have a secondary supplier to provide a back-up?
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While there is always the comfort in knowing we can have multiple sources if any one vendor can leave a company hanging, I have always wondered how this can effect consistency in product quality in a multitude of industries. Does anyone here have issues with quality and consistency when multi sourcing?
I know that while many restaurants and food companies do in fact multi source from different farmers, they do so on a strict criteria of product and process which leads to almost having a vertically integrated supply chain. The only difference is, the parts of the supply chain become independent contractors working exclusively for the main company. The main company gets a vertically integrated supply chain without assuming the risk of acquiring more assets. The farmer gets a reliable client and the and food company gets consistent product done it’s way. I’ve always wondered if there could be any cons on the farmer’s end in this situation with privatized standardization.