Which type of suppliers holds a monopoly in the marketplace and has little or no alternatives?

Bottleneck suppliers are characterized by their unique position in the marketplace where they provide specific goods or services that are critical to the production process, and alternatives to these suppliers may be limited or nonexistent. This creates a dependency for the purchasing organization, as finding substitutes can be challenging, time-consuming, and potentially costly.

These suppliers can dictate terms and pricing due to their specialized offerings, often resulting in significant leverage during negotiations. For organizations dealing with bottleneck suppliers, it becomes essential to actively manage relationships and develop strategies that may include finding alternative sources or investing in supply chain sustainability to mitigate risks associated with reliance on a single supplier.

Strategic suppliers typically have a degree of partnership with the organization, and leverage suppliers are those who can be influenced by market forces, while routine suppliers generally provide standard or easily replaceable goods. None of these categories encapsulate the monopolistic nature and limited alternative options that define bottleneck suppliers as closely as the correct choice does.