Astrategic allianceis most appropriate in asingle sourcingarrangement where the buyer relies on one supplier for a significant proportion of supply. Single sourcing encourages long-term collaboration, trust, joint investment, innovation, and shared risk management. Strategic alliances are not suitable for competitive or multiple sourcing, where maintaining competition and switching flexibility is the priority. Internal sourcing does not involve an external supplier relationship. Ethical and responsible sourcing promotes strategic alliances where long-term value, sustainability, quality improvement, and supply continuity are critical to organisational success.
[Reference:CIPS L4M4 Ethical & Responsible Sourcing Study Guide (v2) – sourcing strategies; single sourcing and supplier relationships., ]
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