In order to maximize profit, a buying firm should continuously search for and access sources which offer more favorable prices.Exploiting the potential of alternative supply sources and the problem of when and how to switch to an alternative supplier are fundamental issues every firm has to cope with.Supplier switching costs may also hinder the firm from exploiting the opportunity to source the product at lower costs . If the buyer decides to partly switch to an alternative supplier, he incurs switching costs, that is, one-time costs upon switching from one supplier to another.
