Single sourcing is only used by buyers where the total requirement is too small to justify splitting orders among more suppliers. Is this statement correct?
A.
No, because single sourcing should only be used where there is just one supplier in the market
B.
Yes, because many suppliers tend to increase stock variety and stock proliferation
C.
No, because single sourcing may also be used when a requirement demands expensive set-up costs
D.
Yes, because single sourcing works well within a volatile supply environment
Single sourcing can be appropriate when set-up costs are high, making it impractical to involve multiple suppliers. This aligns with responsible sourcing principles, particularly for high-value or specialised items, where relationship management and collaboration with one supplier can enhance quality and efficiency.
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