What is single sourcing?

• A. Using one supplier for a product or service.
• B. Using several suppliers to reduce risk.
• C. Purchasing only from domestic suppliers.
• D. Sourcing based on lowest price regardless of other factors.

Answer: (A)

Single sourcing means obtaining a product or service from one supplier rather than splitting orders among multiple suppliers. This approach can simplify procurement, strengthen collaboration with that supplier, and often lead to more consistent quality, reliable lead times, and easier negotiations on terms. It also reduces administrative work because you deal with one contract, one set of performance metrics, and one point of contact. However, it creates dependency on that single source, so any disruption at that supplier—delays, quality issues, or financial trouble—can halt your supply. The other options describe different strategies: using more than one supplier to spread risk, restricting to domestic suppliers, or choosing suppliers based only on the lowest price, none of which capture the idea of relying on a single supplier.