Supply Chain Management Professional (SCMP) · Question
What is the main benefit of a 'single-source' strategy in procurement, despite its inherent risks?
Single-sourcing can lead to deeper relationships, economies of scale, and specialized knowledge, simplifying management despite concentration risk.
Start free practice for Supply Chain Management Professional (SCMP)
200 questions · no signup required · 40 free questions per day
Question: What is the main benefit of a 'single-source' strategy in procurement, despite its inherent risks?
Answer options:
- Increased competition among suppliers ✅ Simplified supplier relationship management and potential for stronger partnership
- Lower inventory holding costs due to diversified supply
- Reduced risk of supply chain disruption
Correct answer: Simplified supplier relationship management and potential for stronger partnership
Explanation: Single-sourcing can lead to deeper relationships, economies of scale, and specialized knowledge, simplifying management despite concentration risk.
Start free practice for Supply Chain Management Professional (SCMP)
200 questions · no signup required · 40 free questions per day
More about Supply Chain Management Professional (SCMP)
More for Supply Chain Management Professional (SCMP) candidates
Ready to practice?
Free, no signup required. Build a wrong-question list as you go.
Start Free Supply Chain Management Professional (SCMP) Practice →Related courses
Other Canadian certifications candidates often prepare for alongside this one.