Sole supplier procurement

There are many different ways of procuring. We can procure different products and services from different suppliers depending on what is most suited to the organisation's need. Alternatively we could appoint and work with just one supplier to provide all our technology needs. This is a sole supplier agreement. One example is DMU, which has a sole supplier agreement with Hewlett Packard. Sole supplier mean that the supplier provides certain products and services right across a sector,

It can cover outsourcing the entire IT service to one company

Tasks

Question 1: Explain what a sole supplier agreement is and how it works.

Question 2: Using several examples, identify the advantages and disadvantages of a sole supplier agreement.

Question 3: Explain how you would negotiate and start up a sole supplier arrangement. Additionally how might you end one?