Should a company use a supplier who can perform all of their procurement tasks for them? Is this a smart strategy to use within the business model?

I find that there are certain situations where using a supplier to Purchase an item for you, can actually be a benefit to a company. A situation where the supplier has a larger buy volume for instance, allows them to be able to leverage lower costs.

However, you still need to keep a watchful eye on your supplier. As these suppliers are looking to make money. Having a middleman, can be an added cost in many ways. ( wolf in hen house scenario )

I would NOT suggest giving them full control over all of your commodities. If you can get something such as a Fastener cheaper through your supplier who buys the same part number for other companies also, then by all means do it and get the better cost. This could also create a better Logistics scenario.

Be careful when making choices like this. What are your risks? Manage them properly!!