Sourcing Decisions in a Supply Chain - Sharing risk and reward in the supply chain
3 important questions on Sourcing Decisions in a Supply Chain - Sharing risk and reward in the supply chain
What is the result and reason of an absence of risk sharing in a supply chain?
It exists because retailers aim for a lower level of product availability than would be required to maximize supply chain profits to realize local optimal decisions.
Give 3 approaches to increase the risk sharing
- Buybacks or returns
- Revenue sharing
- Quantity flexibility
What is the point of having shared-savings contracts?
For example to reduce the suppliers lead time, by giving supplier part of savings from reducing this lead time.
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