$26$

Multiple Choice $2$ points

Why is it important for companies to evaluate their supplier relationships across the entire organization in strategic sourcing?

It helps prevent suppliers from having excessive leverage in negotiations, ensuring the company maintains complete control over pricing.

By understanding all the interactions with a supplier, companies can identify ways to reduce costs or improve efficiency.

It allows them to consolidate all purchasing decisions into a single department, reducing complexity.

Evaluating supplier relationships across the organization ensures that procurement managers can minimize the number of suppliers used.