What can be a challenge in multi-sourcing associated with quality?

What can be a challenge in multi-sourcing associated with quality?

• A. Increased economies of scale
• B. Challenges in quality control
• C. Greater bargaining power
• D. Better contract management

Answer: (B)

In multi-sourcing, a strategy where a company uses multiple suppliers for the same product or service, challenges in quality control often arise. When different suppliers are involved, each may have varying processes, standards, and practices in production. This variability can lead to inconsistencies in the quality of the products or services being received. Each supplier might have different levels of technology, employee skill sets, and quality assurance processes, making it difficult for a company to maintain a uniform standard of quality across all sources. Consequently, managing and ensuring that all suppliers meet the company's quality expectations becomes a complex task. Quality control must not only focus on individual suppliers but also on the integration of diverse components from multiple sources, which can be significantly more challenging than working with a single supplier who can provide a consistent, controlled quality. In contrast, while increased economies of scale, greater bargaining power, and better contract management can be positive outcomes of multi-sourcing, they do not directly address the inherent challenges related to maintaining uniform quality. Therefore, the emphasis on challenges in quality control highlights a fundamental concern associated with the multi-sourcing strategy.

In multi-sourcing, a strategy where a company uses multiple suppliers for the same product or service, challenges in quality control often arise. When different suppliers are involved, each may have varying processes, standards, and practices in production. This variability can lead to inconsistencies in the quality of the products or services being received.

Each supplier might have different levels of technology, employee skill sets, and quality assurance processes, making it difficult for a company to maintain a uniform standard of quality across all sources. Consequently, managing and ensuring that all suppliers meet the company's quality expectations becomes a complex task. Quality control must not only focus on individual suppliers but also on the integration of diverse components from multiple sources, which can be significantly more challenging than working with a single supplier who can provide a consistent, controlled quality.

In contrast, while increased economies of scale, greater bargaining power, and better contract management can be positive outcomes of multi-sourcing, they do not directly address the inherent challenges related to maintaining uniform quality. Therefore, the emphasis on challenges in quality control highlights a fundamental concern associated with the multi-sourcing strategy.