UPSTREAM SUPPLY CHAIN DILEMMA – SINGLE OR MULTIPLE SOURCING
UPSTREAM SUPPLY CHAIN DILEMMA – SINGLE OR MULTIPLE SOURCING

Summary/Abstract: Supply chains, as networks of companies, are focused on creating greater value to meet market needs with aim to achieve higher profitability. In this regard, all activities and processes within supply chain, starting from supply of raw materials until to the delivery of final products at the market, must be organized bearing in mind the aim of the supply chain. The focus of the paper is on upstream supply chian, and on solving the dilemma of supplying from single or muliple sources. The significance of this part of supply chain arises from the fact that any potential disorder or disruption in supplying can jeopardize making the value for consumers and the survival of the whole chain. Considering that due to the reduction in the complexity of upstream supply chain management, there is a trend of supplier base reduction, the aim of the paper is to determine how much this trend is present in the Republic of Serbia, with a special emphasis on the food industry. Using by regression analysis and based on the results of empirical research, the authors point to factors that determine the size of the supplier base in the food industry in the Republic of Serbia.

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