Answer / prabhu

Advantages:
1.Consistency of quality and delivery
2.The supplier fully understands your needs and requirements
3.The supplier can be involved early in the design
process
4.A cooperative rather than competitive relationship
5.Easy to control entire supply chain

Disadvantages:
1.A catastrophic event stops production
2.Less negotiation leverage
3.The suppliers may fear dependency on your business
4.The supplier may become self-righteous
5.Greater exposure to risk

Answer / mamta

Advantage:
1. Decrease Administration Costs/Ease of Tracking
2. Better Negotiation due to bulk purchases
3. Trust Based Relationship/Partnership for New Product Development
4. Better Quality Assurance

Disadvantages:
1. Risk of Vertical Integration by Supplier
2. Increased Dependency

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