Supply Chain Report 2023

3a Fair balance of risk and reward Are potential risks and rewards objectively discussed and evaluated before the contract starts and thereafter shared appropriately? ( See figures below. ) Generally it is a positive story, with over 70% agreeing that risks and rewards are discussed before the contract starts. Over 65% agree they are reviewed during

the contract’s life. However, the results produced a slightly different story further down the supply chain, showing the two are not fairly balanced: there is more focus on the short-term costs than on the long-term value that healthy commercial relationships can create. Over a third of tier 2/SME companies said risks and rewards were never reviewed during the contract’s life-cycle and 30% said potential risks and rewards are rarely

Figure 1: Combined (all responses)

50%

45%

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35%

30%

25%

20%

15%

10%

5%

0%

Yes sometimes Yes all the time Don't know

Rarely

Never

Figure 1a: Operators

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45%

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35%

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20%

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10%

5%

0%

Yes sometimes Yes all the time

Rarely

Don't know

Never

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SUPPLY CHAIN REPORT 2023