What is a disadvantage of the "few suppliers" strategy?

Choosing a "few suppliers" strategy can lead to increased dependence on those particular partners, which brings about the disadvantage of incurring high costs when attempting to change suppliers. This is due to several factors, including the investment of time and resources required to establish new relationships, the need for training or transition processes, and the potential disruption in service or quality during the switch. When a business relies heavily on a small number of suppliers, it becomes entwined in contracts and processes that are not easily broken or altered without incurring significant costs.

This disadvantage highlights that while having fewer suppliers can simplify management and allow for closer relationships, it can also create vulnerabilities that may prove costly when the need for change arises, whether due to pricing shifts, service issues, or the decision to pivot strategically.