The term Multiple Sourcing means that there is a choice of product between different bidders.
Brief description
This product delivery strategy is the most flexible strategy as well as the most market-oriented. The choice of a particular supplier can be made evenly through quotas, or depending on the situation, it can settle on the basis of a favorable market offer.
The benefits lie in its flexibility as well as maintaining competition. Thus, one can take advantage of favorable market prices. In addition, the situation of a dependency relationship with a particular bidder can be avoided.
The disadvantage is increased communication and administrative effort, as there is a compulsion to maintain business relations with a large number of bidders.
