A defence-technology firm needs a specialised electronic subassembly for a government contract. One potential supplier has the best technical capability and can meet the delivery deadline, but it also competes with the buyer for other defence contracts. The purchase is possible without sharing the buyer’s full product design, but some technical interface information must be exchanged. Senior managers are concerned about protecting confidential information while still using the supplier’s capability. What should the purchasing team prioritise before selecting this supplier?

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Select the supplier on technical capability alone because delivery performance matters more than information-sharing concerns.

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Avoid the supplier entirely because a company that competes with the buyer should never be considered as a supply source.

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Proceed only if the arrangement clearly controls what information will be shared and how confidential information will be secured.

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Treat the supplier as a long-term partner because competitors with strong technical capability should receive full planning visibility.

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A defence-technology firm needs a specialised electronic subassembly for a gover...

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