Hi guys, I did a profitability case of manufacturing yesterday and one of the questions was "what are the disadvantages of relying on only one supplier"?
Apart from the "supplier will have high bargain power", "supplier may not have enough capacity", another sample answer in the case book is that
"if the client wishes to add suppliers later, going from one supplier to two is much harder than than going from two to three".
Can someone please explain why as I don't have enough background knowledge of manufacturing. thanks.
