Questions & Answers Section Given in HKICPA Seminar on 23 Jun 2012

Question 6:
From buyers points of view they will try and avoid a single source, and the suppliers will try and avoid a single buyer. So my question is how buyers manager their tier two and tier three suppliers? Will buyers try and avoid the concentration of purchase with one supplier?

We are working with data from a large phone manufacturer – the number of supplier's ranges from 2 to 11 for various components that they source for the phone.