Certified Supply Chain Professional (CSCP) Practice Exam

Which procurement strategy involves sourcing from more than one supplier?

1. Sole source

2. Multi-sourcing

3. Single-source

4. Tactical buying

The correct answer is: Multi-sourcing

The procurement strategy that involves sourcing from more than one supplier is multi-sourcing. This approach allows organizations to mitigate risks and ensure a steady supply of goods and services by engaging multiple suppliers for the same product or service. By diversifying their supplier base, companies can avoid potential disruptions caused by a single supplier's inability to deliver, thereby enhancing resilience in their supply chain. Multi-sourcing also fosters competition among suppliers, which can lead to better pricing, improved service levels, and innovation through different perspectives and solutions. Organizations can strategically select suppliers based on factors such as quality, cost, delivery time, and reliability, thereby optimizing their procurement processes. The other options represent different procurement strategies that do not involve multiple suppliers in the same way. Sole source refers to obtaining goods or services exclusively from one supplier, while single-source involves selecting only one supplier despite the possibility of multiple sources. Tactical buying focuses on short-term purchasing decisions aligned with immediate needs rather than long-term strategic sourcing, which does not inherently involve multiple suppliers.