Many Supplier VS. Few Supplier

Explain each :

Many:

Commonly used for commodity products

Purchasing is typically based on price

Suppliers compete with one another

Supplier is responsible for technology, expertise, forecasting, cost, quality, and delivery

Few:

Buyer forms longer term relationships with fewer suppliers

Create value through economies of scale and learning curve improvements

Suppliers more willing to participate in JIT programs and contribute design and technological expertise

Cost of changing suppliers is huge