Should the purchase be made from a single supplier or multiple suppliers?


Purchase of stationeries can be effected in two ways like purchase from a single supplier and purchase from multiple suppliers. The former purchase establishes an intimate relationship between the buyer and the seller. This relationship reduces the chances of apprehension being cheated through stationeries of low quality. Besides regular purchases from a single person enables supply of stationery on liberal terms and price. The limitation of this method is that it may develop unhealthy intimacy between the supplier and. the person in charge of purchase. The other suppliers will not supply when regular suppliers fails to supply.

Buying from different suppliers ensures a steady supply of stationery as failure on one part of the supplier can be repaired by the other supplier. It ensures a sense of competition in the state of suppliers, which are beneficial to the firm. The disadvantages of this method are that the buyer cannot claim price preferences or priority of uninterrupted supply because he is not a regular customer.

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