Which statement best describes a common con of multi-sourced suppliers?

Which statement best describes a common con of multi-sourced suppliers?

• A. Increased coordination complexity and potential quality variation
• B. Lower management effort due to multiple suppliers
• C. Absolute supply certainty
• D. Decreased price due to competition

Answer: (A)

Sourcing from multiple suppliers tends to bring more coordination work and can lead to variation in quality across vendors. When you juggle several suppliers, you must align specifications, lead times, order processes, and quality checks for each one. That means more contracts to manage, more communication touchpoints, and more measurements to ensure consistency. The result is higher coordination complexity and a greater chance that product quality varies between suppliers, which can complicate planning and quality assurance. Why the other ideas don’t fit as well: choosing multiple suppliers generally increases, not decreases, management effort due to the need to oversee several relationships. Absolute supply certainty isn’t guaranteed because disruptions can affect any supplier, and having alternatives doesn’t eliminate risk. Decreased price due to competition isn’t guaranteed either—switching costs, smaller order sizes, and added administrative work can offset savings, so prices aren’t inherently lower.

Sourcing from multiple suppliers tends to bring more coordination work and can lead to variation in quality across vendors. When you juggle several suppliers, you must align specifications, lead times, order processes, and quality checks for each one. That means more contracts to manage, more communication touchpoints, and more measurements to ensure consistency. The result is higher coordination complexity and a greater chance that product quality varies between suppliers, which can complicate planning and quality assurance.

Why the other ideas don’t fit as well: choosing multiple suppliers generally increases, not decreases, management effort due to the need to oversee several relationships. Absolute supply certainty isn’t guaranteed because disruptions can affect any supplier, and having alternatives doesn’t eliminate risk. Decreased price due to competition isn’t guaranteed either—switching costs, smaller order sizes, and added administrative work can offset savings, so prices aren’t inherently lower.