Question

Making sure that all partners adhere to a supply chain's competitive priorities is an example of which option to reduce operational risks?

1) Supplier evaluation and selection
2) Supplier relationship management
3) Supply chain risk management
4) Supply chain collaboration

Answer 1

Ensuring that supply chain partners adhere to competitive priorities exemplifies Supply Chain Collaboration, a method to effectively manage risks and share responsibilities, mitigating the effects of imperfect information on supply chain operations.

Step-by-step explanation:

Making sure that all partners adhere to a supply chain's competitive priorities is an example of Supply Chain Collaboration. This strategy emphasizes the importance of partners working closely together to manage the supply chain effectively. By collaborating, partners can share responsibility and risk, which includes combining complementary skills for better management of operational risks. Additionally, supply chain collaboration aids in reducing the risks of imperfect information, which can have significant impacts on price, quantity, and quality within the supply chain.