What is a delegated supply strategy?

• A. One source of supply
• B. Several sources of supply
• C. Outsourced part of production
• D. Combination of all other 3 supply strategies to maximise the benefit of each

Answer: (C)

Delegated supply strategy means outsourcing part of production to an external supplier. The organization delegates specific components or processes to another company, while retaining overall responsibility for the product and its delivery, using the external partner’s expertise or capacity to gain cost or efficiency advantages. This focuses on who performs the production, not on how many sources you use or whether you combine strategies. For example, a company might outsource the fabrication of a sub-assembly to a contract manufacturer while keeping final assembly in-house.