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Supply Chain Management Professional (SCMP) · Question

Which of the following is a common risk associated with single sourcing?

Single sourcing, while offering potential benefits, poses a significant risk of supply disruption if the sole supplier faces issues, and can lead to less compet

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Question: Which of the following is a common risk associated with single sourcing?

Answer options:

  • Reduced economies of scale. ✅ Potential for supply disruption and lack of competitive pricing.
  • Increased administrative burden.
  • Higher transportation costs.

Correct answer: Potential for supply disruption and lack of competitive pricing.

Explanation: Single sourcing, while offering potential benefits, poses a significant risk of supply disruption if the sole supplier faces issues, and can lead to less competitive pricing over time.

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