Suppliers can be "preferred" in a number different ways. A company may have used the supplier in the past or they may have been an unsuccessful tenderer that had good potential for future projects. They may also have been recommended by another company.
A preferred supplier is an option that is strongly considered as a buyers sourcing strategy because of the supplier’s success in previous projects or
because of the potential the buyer sees in the preferred supplier. The main advantage of maintaining a preferred supplier list is the fact that the buyer has already evaluated the supplier and is able to identify the supplier’s possible...