Lots of Mfgs use two or more sources. It keeps the vendors honest when it comes to pricing. Another notable example is the sourcing of hydraulic pumps by IH. Thompson and Cessna had to share the pie.
Purchasing agents or buyers can be demanding in pursuing the lowest cost item that meets their specifications. Making vendors compete lowers costs.
It is far more prevalent today than in olden days when many mfgs were vertically integrated. Examples would be IH owning mines, ships to carry the ore, foundries to reduce and pour it. and machine shops to finish it. Now-a-days, everything but final assembly of major components is subcontracted.
Nearly all mfgs for any product pursue this practice. In some cases, a brand name only reflects the distributor who never lays hands on the product that bears his name.
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Today's Featured Article - Talk of the Town: The Saga of Grandpa's Tractor - by The following saga is from the Tractor Talk Discussion Forum. Someone. The saga starts with the following message: Hey guys I have a decision to make. I know what you all will probably suggest and it will probably agree with me way down inside, but here it is. I have a picture blown up and framed in my "tractor room" of a Farmall M. It was my Grandpa's tractor, of which whom I never got to meet. He froze to death getting this tractor out of the barn to pull a truck out of the ditch before I was born. Anyway my dad and aunt had to sell it at the auction,
... [Read Article]
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