1. Risk Mitigation: Diversifying suppliers helps in spreading risk. If one supplier fails, others can fill the gap, ensuring business operations are not halted. 2. Cost Efficiency: When you have multiple suppliers, you can compare prices and negotiate better deals, leading to cost savings. 3. Innovation and Quality Improvement: Different suppliers bring different strengths. By working with multiple suppliers, you can tap into a wider array of innovations and higher-quality products or services. 4. Enhanced Negotiation Power: Having multiple options gives you leverage in negotiations, as you are not overly dependent on a single supplier.