Supply chain agreements should be designed to reward all participants when collaborative ventures are successful and all participants should share the consequences when these ventures are less successful than desired.

Question

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This statement emphasizes the importance of designing supply chain agreements that promote collaboration and shared responsibility for outcomes. When all parties are incentivized to work together towards a common goal, the chances of success are increased and risks can be shared among all participants. This approach is increasingly recognized as essential for achieving sustainable and resilient supply chains.

Supply Chain Agreements Should Be Designed to Reward All Participants