Advantages and disadvantages of single supplier and multi-supplier

1, when the quantity of some products to be purchased by an enterprise is small, if there is only one supplier, the maximum purchase quantity can be used as a bargaining chip to lower the price to a certain extent, thus achieving the purpose of reducing the procurement cost. At the same time, due to the directional supply, the source of purchase is stable, the product quality is relatively stable, and there is a tacit understanding of mutual cooperation.

2. The advantage of multi-suppliers is that they can choose the best through price and quality comparison and find out the most economical products through peer competition; With competition, price negotiations will have better chips; In addition, because of peer competition, suppliers will always review their service attitude and product quality; At the same time, due to the diversification of channels, once a supplier has problems, it can immediately use standby suppliers to supply, thus reducing the procurement risk caused by delayed delivery.

Disadvantages:

1, single supplier is not conducive to price negotiation because of its monopoly position; After-sales service is relatively passive;

2. Multi-suppliers are not conducive to supplier management;

Modern enterprises generally adopt multi-supplier model to deal with the risk of supply chain breakage and take the initiative in price negotiation. Even the CPU supply of computer brands Lenovo, Dell and Hewlett-Packard broke the single Intel supply model and joined AMD and IBM in various ways.