Which of the following is NOT an advantage of the "few suppliers" sourcing strategy?
A) suppliers have a learning curve that yields lower transaction and production costs
B) suppliers are more likely to understand the broad objectives of the end customer
C) less vulnerable trade secrets
D) creation of value by allowing suppliers to have economies of scale
E) suppliers' willingness to provide technological expertise

Question

Quizplus · Accepted Answer

The "few suppliers" sourcing strategy involves working with a limited number of suppliers, which can result in several advantages such as lower transaction and production costs, economies of scale for suppliers, and access to technological expertise. However, it can also make the company more vulnerable to trade secrets being leaked since there are fewer suppliers involved. Therefore, C is the correct answer as it is not an advantage of this sourcing strategy.

Which of the Following Is NOT an Advantage of the "Few