Certified Supply Chain Professional (CSCP) Practice Exam 2025 - Free CSCP Practice Questions and Study Guide

Question: 1 / 2185

What is meant by sole source in procurement?

Multiple suppliers for the same product

Only one organization can provide a product

In procurement, the term "sole source" refers to a situation where only one organization can provide a specific product or service. This can occur due to various reasons such as the uniqueness of the product, proprietary technology, or legal rights that limit supply options. By having only one source, the procuring organization does not have the ability to choose among different suppliers, which can affect pricing and availability. Understanding the implications of sole source procurement is crucial for supply chain professionals, as it can lead to higher risks associated with supply continuity and dependency on a single supplier. This concept contrasts with scenarios where multiple suppliers exist, which allows for competition and alternatives.

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Suppliers offering the same product at different prices

None of the above

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