In which instance would multiple sourcing be the most applicable approach?
A.
Sourcing for the provision of a service, where close relationship management is required
B.
Sourcing a specialised, unique component where the supplier’s knowledge is key
C.
Sourcing for high-cost, strategically important components
D.
Sourcing for components required at short notice
The Answer Is:
D
This question includes an explanation.
Explanation:
Multiple sourcing reduces dependency risks and provides flexibility in urgent supply situations. For components needed at short notice, having multiple suppliers ensures continuity and responsiveness. Strategic, high-value, or unique components (B, C) often require single or closer sourcing to ensure collaboration and expertise. Service provision (A) typically benefits from relationship-based sourcing rather than multiple arrangements. Responsible sourcing stresses that multiple sourcing is a risk management tool, best applied where speed, availability, and resilience are essential.
[Reference: CIPS L4M4 Study Guide (v2), LO: “Application” – sourcing strategies (single vs multiple sourcing)., ]
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