L4M4 Exam Dumps | Many organisations prefer a multi-sourcing approach because of the advantages it provides. Which of the

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CIPS.L4M4.v2025-11-05.q105
Question 65

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Question 65/105

Many organisations prefer a multi-sourcing approach because of the advantages it provides. Which of the following might be an advantage of multi-sourcing?

A. It is the only approach that supports the open tendering process

B. It is the only approach that enables the buyer to isolate the best supplier from among many

C. It helps the buyer to increase stock varieties to avoid stock-outs

D. It increases process flexibility and switching using a range of approved suppliers

Correct Answer: D

Multi-sourcing allows organisations to diversify their supply base, providing flexibility, and reducing risk by having multiple suppliers. It is an effective strategy to prevent over-dependence on a single source and allows for competition among suppliers, promoting quality and ethical standards in the supply chain.

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