CoR Australia has worked with key industries to ensure that the CoR exposure across the supply chain is properly managed by all parties in a co-ordinated and efficient manner.
Through this approach parties have moved beyond a simplistic “risk transfer” outsourced model to an efficient working model that aligns with CoR, manages risks across the supply chain and reduces costs.
Many supply chain parties understand their direct risks in their immediate operations and manage their contract risks through meeting the Performance Specification in the service contracts. To many this can seem a reasonable approach, until something goes wrong.
There are many way to improve, monitor and share efficiency gains.
Invariably no opportunity for gain will be explored, unless all parties are likely to benefit.
An important question for any supply chain partner is:
What should I do if the well run transport company we use, can not continue to operate effectively under the contract?