Question

A disadvantage of the "few suppliers" sourcing strategy is: the suppliers are less likely to understand the broad objectives of the procuring firm and the end customer. possible violations of the Sherman Antitrust Act. the risk of not being ready for technological change. the lack of cost savings for customers and suppliers. the high cost of changing partners.

Answer 1

Answer:

the high cost of changing partners.                

Explanation:

The answer is ---

"the high cost of changing partners".

Strategic sourcing is a procurement process in an organisation that continuously improves purchasing activities of a company. It is the development of the supply channels.

There are six main sourcing strategies that runs in an organization --

• many suppliers
• few suppliers
• vertical integration
• joint ventures
• vertical suppliers
• keiretsu networks

In few suppliers sourcing strategy,the buyers build long term relationship with the suppliers and create high values. Trade secrets are maintained and other alliances are kept secret.

But the disadvantage with fewer supplier sourcing strategy is the high cost of changing supplier. When supplier are change or new supplier is made for purchase, it cost the company. New supplier tends to charge more for the supply.

Thus the answer is ---

the high cost of changing partners.