You have been re-sourcing OEM and found the latest, new products from a good supplier, in a low-cost country. You are getting a good product, price, and service. You even become friend with the CEO. You're pushing your sales teams, creating market share, and making money. Right!!! You are buying more and more.
Next, your competitors cut your pricing with products which looks and works similar to yours. You quickly lose market share.
You find out that this friend of yours has been supplying your competitors with similar or even the same products, using his secondary factory you did not even know existed.
Your friendship is lost. Does this scenario sound familiar to you?
It doesn't have to be like that. You can be rewarded and protects your efforts forever.