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Supply chain risk-sharing contracts from a buyer's perspective: content and experiences

In English

Författare

Summary, in English

Abstract in Undetermined
Incentive alignment, and risk & gain sharing, are argued to be key factors for successful implementation of supply chain management. Incentive-related issues can be improved by contract-based, information-based, and trust-based solutions. The focus of this article is on contract mechanisms used in the context of high demand volatility, supply allocation and outsourced supply chains. Two case illustrations from high-tech industry (Agilent and Hewlett Packard) describe recently implemented risk sharing contracts, as well as experiences and issues regarding their implementation from a buyers’ perspective. Although the work of implementing these more formal contracts is demanding, buyers are pleased with the results and also reports pleased suppliers. In the cases the main barrier to implementing risk-sharing contracts seems to be the shift in mindset and culture needed internally, especially among purchasers.

Avdelning/ar

Publiceringsår

2008

Språk

Engelska

Sidor

371-393

Publikation/Tidskrift/Serie

International Journal of Procurement Management

Volym

1

Issue

4

Dokumenttyp

Artikel i tidskrift

Förlag

Inderscience Publishers

Ämne

  • Transport Systems and Logistics

Nyckelord

  • information
  • trust
  • agency theory
  • contracts
  • Supply chain risk sharing
  • incentive alignment

Status

Published

ISBN/ISSN/Övrigt

  • ISSN: 1753-8440