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Supplier can monopolize pricing. Your business can suffer, if the supplier does not live up to expectations.
The risks include limiting the competition, lessening the chances of innovation for the products or services provided by unique supplier, often time / resource consuming supplier relationship management, effect on market reputation due to quality/delivery issues emanating from the unique supplier, long and weaker or absent control of input costs arising out of unique supplier in your supply chain and often long drawn tendering/evaluation/negotiation/variation processes.
Your being exposed to his risks is a big risk to you
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