How do you emphasize the needs for sharing risk among group


Problem

In practice, many companies care less about growing the surplus and more about what share of the surplus they are able to capture. As firms gain greater power in a supply chain, they often attempt to capture a greater share of the surplus while pushing more risk onto their supply chain partners. Independent actions taken by two parties in a supply chain often result in profits that are lower than those that could be achieved if the supply chain were to coordinate its actions with a common objective of maximizing supply chain profits rather than individual firm profits.

As firms get stronger, they tend to push more risk on to supply chain partners while keeping a large margin for themselves. How do you emphasize the needs for sharing risk among the group members in the Supply Chain? Provide examples / cases to support your answer.

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Supply Chain Management: How do you emphasize the needs for sharing risk among group
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