What characterized the 'many suppliers' sourcing strategy?

The 'many suppliers' sourcing strategy is characterized primarily by buying based largely on price competition. This approach involves engaging with numerous suppliers for the same products or materials, allowing the purchasing firm to leverage competition among these suppliers to secure the best possible prices. By having a broad base of suppliers, organizations can foster a competitive environment, which often drives down costs and is ideal for non-critical, commoditized items.

Furthermore, this strategy can also improve flexibility and mitigate risks associated with supply chain disruptions, as having multiple suppliers means that the organization is not overly dependent on a single source. However, the chief focus in this strategy remains on obtaining the most advantageous pricing, as organizations evaluate multiple offers and negotiate deals accordingly. This contrasts with strategies that prioritize long-term partnerships or technology sharing, which are not the main focus of the 'many suppliers' approach.