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Risks may not be explicitly identified.
Risk management confined to price and delivery, e.g. fixed price contracts.
Consequences may be not be understood.
Incidental to capacity requirements, fill rate commitments, NPI
and other expediencies |
Risks recognized and manipulated (and manipulation reacted to) unilaterally,
i.e., Gaming, consigned inventory, over order
Unintended consequences require and often defy mutual reconciliation
Ts&Cs of levered trading partner become tacit Trading Partner Agreement
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Risk managed across partners.
Accountability with the party best able to manage the risk.
Risk explicitly factored into pricing
Buffering strategies to reduce risk, invent roy, capacity
upside, IP security
Visibility to monitor risk
TPA more all inclusive with operational
imperatives and legal coverage |
Design for Supply Chain
Partners contribute to risk reduction in design phase
DFSC, design re-use, common BOMS, or manufacturing postponement
Continuous collaborative risk management in planning and execution
TPA is operational guide as well as legal document for dispute reconciliation, i.e.,Proactive risk reduction techniques supersede risk limiting techniques,collaboratively design in flexibility and DFSC – to reduce risk in entire network, collaborative demand scenario planning with links to performance goals |