One of the disadvantages of the sole-sourcing strategy of purchasing raw materials is that the supplier has more negotiating power on price. Therefore, the correct option is c. sole-sourcing.
Sole-sourcing, the correct answer, is a procurement strategy where a company relies on a single supplier for a specific raw material or component. One of the significant disadvantages of this strategy is that it grants the supplier more negotiating power on price. Since the company is dependent on a single supplier for their critical input, they have limited alternatives and bargaining leverage. This can lead to higher prices and less favorable contract terms, as the supplier knows they have a monopoly on the business.
Conversely, multisourcing (option b) involves obtaining the same raw material or component from multiple suppliers, which can enhance negotiation power and mitigate risks associated with supplier dependencies. Open-sourcing (option a) is often associated with open-source software and not applicable to raw material procurement. Home sourcing (option d) and in-sourcing (option e) do not directly relate to supplier negotiation power in the context of raw material procurement.
Sole-sourcing can be advantageous for ensuring consistent quality and building strong relationships with a single supplier, but it comes with the trade-off of potentially higher costs due to reduced negotiation power. Companies must carefully weigh these factors when deciding on their procurement strategy to optimize their supply chain efficiency and cost-effectiveness. Therefore, the correct option is c. sole-sourcing.
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B. plate motion and hot spot volcanism
C. abyssal tectonics and plate separation
D. hydrothermal venting and changes in sea level
B. plate motion and hot spot volcanism