What is one benefit of consolidating purchasing with a single supplier?

Consolidating purchasing with a single supplier can lead to improved supplier performance tracking because it allows for a more streamlined and focused relationship between the buyer and the supplier. When purchasing is concentrated with one entity, it becomes easier to monitor and assess the supplier's performance over time. This consolidation enables businesses to establish clearer metrics and benchmarks for evaluating the supplier’s delivery times, quality of products, responsiveness, and overall service.

Additionally, having a single supplier reduces the complexity involved in managing multiple supplier relationships, allowing for more direct communication and collaboration. This typically leads to stronger partnerships, as both parties can work together to address issues, negotiate terms, and innovate around product development or service improvements, ultimately enhancing overall supply chain efficiency.

While other choices may present potential outcomes from using multiple suppliers—such as increased prices or communication difficulties—these challenges are generally mitigated through the consolidation approach, making the tracking of supplier performance clearer and more effective.