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

Norrman, Andreas LU (2008) In International Journal of Procurement Management 1(4). p.371-393
Abstract (Swedish)
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... (More)
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. (Less)
Please use this url to cite or link to this publication:
author
organization
publishing date
type
Contribution to journal
publication status
published
subject
keywords
information, trust, agency theory, contracts, Supply chain risk sharing, incentive alignment
in
International Journal of Procurement Management
volume
1
issue
4
pages
371 - 393
publisher
Inderscience
ISSN
1753-8440
language
English
LU publication?
yes
id
7b1fa537-9887-4902-932d-161959cb147b (old id 1219697)
alternative location
http://www.inderscience.com/storage/f107114651912382.pdf
date added to LUP
2008-08-27 10:29:48
date last changed
2016-04-15 20:34:13
@article{7b1fa537-9887-4902-932d-161959cb147b,
  abstract     = {<b>Abstract in Undetermined</b><br/><br>
Incentive alignment, and risk &amp; 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.},
  author       = {Norrman, Andreas},
  issn         = {1753-8440},
  keyword      = {information,trust,agency theory,contracts,Supply chain risk sharing,incentive alignment},
  language     = {eng},
  number       = {4},
  pages        = {371--393},
  publisher    = {Inderscience},
  series       = {International Journal of Procurement Management},
  title        = {Supply chain risk-sharing contracts from a buyer's perspective: content and experiences},
  volume       = {1},
  year         = {2008},
}