Supply Chain Management
Managing supply chain relationships on volatile markets from a risk sharing perspective
Course: Supply Chain Management
Introduction 2 Supply Chain Management as a Network 3 The appearance of the network 3 Managing the Supply Chain 4 Improve the profitability by improving the supply chain 4 Relationships within Supply Chain Management 5 The value/risk model 6 Managing Different Types of Risks 6 The Triple-A Supply Chain 9 Agility 9 Adaptability 10 Alignment 10 Disruption and Risk Management in Supply Chains 10 Risk can lead to disruption 10 Preventing risk 11 How to align goals and work towards them with partners 11 Outcome if it is impossible to mitigate the risk 12 Incentive alignment and risk-sharing 12
Analysis 13
Conclusion 17
Generalization 17
Sourcing 18
Managing supply chain relationships on volatile markets from a risk sharing perspective
Introduction
As a result of shorter product life cycles, higher rates of change and advances within technology companies need to make a choice regarding their supply chain and its components. The globalization of the world has also caused a higher level of outsourced production; this has caused a more advanced supply chain whereas relations have become highly important. Increasing fluctuations and variations in both supply and demand leads to complications in relationships between suppliers, producers and consumers. Moreover, this allows new types of collaborations between the parties in the supply chain. By establishing relationships and writing contracts, companies can prevent risks and create an environment where it is easier to make right decisions that benefit the entire supply chain and creates more value, therefore more actors can gain from the relationship. However, there is a risk aspect, the deeper collaboration is, the higher risk it entails. When the risk for risks are raised the importance of solving the problems which appreciates the
Course: Supply Chain Management
Introduction 2 Supply Chain Management as a Network 3 The appearance of the network 3 Managing the Supply Chain 4 Improve the profitability by improving the supply chain 4 Relationships within Supply Chain Management 5 The value/risk model 6 Managing Different Types of Risks 6 The Triple-A Supply Chain 9 Agility 9 Adaptability 10 Alignment 10 Disruption and Risk Management in Supply Chains 10 Risk can lead to disruption 10 Preventing risk 11 How to align goals and work towards them with partners 11 Outcome if it is impossible to mitigate the risk 12 Incentive alignment and risk-sharing 12
Analysis 13
Conclusion 17
Generalization 17
Sourcing 18
Managing supply chain relationships on volatile markets from a risk sharing perspective
Introduction
As a result of shorter product life cycles, higher rates of change and advances within technology companies need to make a choice regarding their supply chain and its components. The globalization of the world has also caused a higher level of outsourced production; this has caused a more advanced supply chain whereas relations have become highly important. Increasing fluctuations and variations in both supply and demand leads to complications in relationships between suppliers, producers and consumers. Moreover, this allows new types of collaborations between the parties in the supply chain. By establishing relationships and writing contracts, companies can prevent risks and create an environment where it is easier to make right decisions that benefit the entire supply chain and creates more value, therefore more actors can gain from the relationship. However, there is a risk aspect, the deeper collaboration is, the higher risk it entails. When the risk for risks are raised the importance of solving the problems which appreciates the