What is a distinguishing feature of the 'few suppliers' sourcing strategy?

In a 'few suppliers' sourcing strategy, a key characteristic is the establishment of longer-term relationships between buyers and suppliers. This approach emphasizes quality, collaboration, and partnership rather than solely competing on price. By limiting the number of suppliers, companies can focus on deeper engagements, which can lead to enhanced communication, improved trust, and better alignment of goals. Such relationships often result in tailored services, shared innovation, and consistent quality in materials, which can provide a competitive advantage.

The focus on building and maintaining these long-term partnerships allows organizations to work closely with suppliers to optimize production schedules, improve supply chain methodologies, and facilitate mutual growth. In contrast, alternative sourcing strategies that rely on competing suppliers may prioritize transactional relationships, potentially compromising the long-term benefits and stability that arise from strong supplier connections.