What is the purpose of single-sourcing in supply chain management?

The purpose of single-sourcing in supply chain management is purchasing a product from only one supplier. This procurement strategy is often employed to streamline operations, foster closer relationships with a single supplier, and potentially achieve benefits such as lower costs due to high-volume purchases. By concentrating purchasing power with a single supplier, a company can create a more reliable sourcing process, as they can establish a collaborative relationship that leads to improved quality, more consistent supply, and better communication.

Single-sourcing can also simplify logistics and reduce administrative burdens since managing a single supplier often involves fewer contracts and less complexity compared to dealing with multiple suppliers. This strategy can lead to enhanced operational efficiencies and greater overall value for the organization, particularly if the chosen supplier has capabilities or specializations that align closely with the company's needs.

The other choices provide alternative strategies or concepts that do not accurately reflect the core objective of single-sourcing, which specifically involves selecting one supplier for a particular product.