Multi-sourcing

1.      Why some buying organizations do prefers smaller pool of vendors to collaborating with large number of vendors?

• (a)    It offers longer payment period

• (a)    The credit terms are better

• better terms, service and more personal attention pricing

• Offers free delivery of supplies

1.      Multi-sourcing is a purchasing strategy that consist of maintaining constant relationship and sourcing from?

• (a)    Two or more suppliers

• (a)    A single supplier

• (a)    A non-strategic partner

• (a)    All of the above

Which of the following is true about multi-sourcing?

• (a)    It encourages partnering and sourcing from a single supplier

• It is driven by organizations that seek more flexible, innovative and competitive supplier relationship.

• (a)    It is the practice of collaborating and sourcing from two strongest partners

• (a)    All of the above

Which of the following is true about multi-sourcing?

• (a)    The source of supply are usually competitors

• (a)    It encourages innovativeness

• A & B

• (a)    None of the above

Dual sourcing is not an example of multi-sourcing

• True

• False

The following are advantages of multi-sourcing except?

 

• Possible increase in expenses

• Maintaining a competitive edge in the market

•   Reducing risk while increasing the quality of service

• Opportunity to focus on core expenses

The two primary models of multi-sourcing are; single prime contractor model & multiple prime contractor model

• TRUE

• FALSE

Which of the following describes a Single Prime contractor?

• (a)    The model is more complex and difficult to manage

• Appointing a prime contractor allows the client to give up control of the process

• Involves leadership of multiple suppliers by a single contractor, who takes responsibility for carrying out the objectives and measures set by the client

• (a)    None of the above

Which of the following is not a disadvantage of multi-sourcing?

• Difficulty in sharing information

• (a)    Possible increase in expenses

• Flexible and scalable

• (a)    Poor customer service

The risk involve in multi-sourcing is

• Lack of trust between the buying organization and the supplier

• Difficulty of fulfilling demand

•   Challenges of fulfilling contract’s requirements

• Loss of certain rebates