What is a single 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: (A)

A single supply strategy means procuring all required materials from one supplier. This simplifies procurement, reduces administrative work and transaction costs, and can allow the buyer to secure more favorable terms through high-volume purchases and a closer, more collaborative relationship with that supplier. It can also improve consistency and quality control when working closely with a single partner. However, the downside is increased vulnerability to disruption if that supplier faces problems (delivery delays, price hikes, or failure), and there’s less competitive pressure on price or service. The other options involve multiple sources, outsourcing parts of production, or combining strategies, which do not describe single sourcing.