Preferred Supplier 

A preferred supplier is a company that has been carefully selected by a buyer to provide goods or services. The selection process usually involves considering multiple suppliers and evaluating them against set criteria. Once a preferred supplier has been chosen, the buyer typically enters into a long-term contract with them.

The main advantage of having a preferred supplier is that it can lead to cost savings. This is because the buyer knows exactly what they need from the supplier and can negotiate better terms. There is also less risk involved as the buyer has already vetted the supplier and knows they can rely on them. Another benefit is that it can help streamline the procurement process as there is only one point of contact.

However, there are some disadvantages to having a preferred supplier. One is that it can limit competition and stifle innovation. This is because the buyer may be less likely to consider other suppliers if they already have a good relationship with their current one. Another downside is that it can make the procuring organization too reliant on one supplier, which can lead to problems if they experience any issues with their products or services.

Overall, whether or not to have a preferred supplier depends on the specific needs of the procuring organization. If cost savings and efficiency are prioritize