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The strategy combination of single sourcing and longterm contractsis rapidly becoming the norm in progressive purchasing functions. Theimplications of this radical development is examined by disentanglingthe advantages and disadvantages of the separate strategies beforerecombining them to provide a generally applicable sourcingcontractingdecisionmaking model. The conclusions indicate that, contrary tocurrent practice, large, powerful purchasing functions should avoid theuse of single sourcing and longterm contracts.
International Journal of Operations & Production Management – Emerald Publishing
Published: Aug 1, 1990
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