Contracts between two or more parties do not allow the shifting of risk between the entities and do not constitute the foundation and fabric for every type of supply chain relationship.

Question

Quizplus · Accepted Answer

Contracts are one of the key foundations for supply chain relationships and are often used to delineate and allocate risk between parties. Contracts can also be used to establish performance metrics, quality standards, and other important aspects of the relationship. Therefore, contracts can be critical to the success of a supply chain relationship, and are often used to establish trust and accountability between the parties involved.

Contracts Between Two or More Parties Do Not Allow the Shifting