Negotiated Risk Analysis
There are various risks involved in the logistic industry as there are various parties involved. This results in the management of International Logistics to implement the proper risk distribution and negotiation so as to reduce the risks the company would have faced and distribute it to its various stakeholders.
Global Supply Chain Forum
In order for International logistics to distribute its risks effectively and reduce its risks, it resulted to the implementation of the Global Supply Chain Forum (GSCF) model. The firm wants to implement the model on a trial basis but there are pressures to make it a long-term project. Following the long-term orientation model, fresh foods and International logistics will be focused on exchanges relation who emphasizes on long term performance.
This results in the implementation of a strict system of monitoring to judge the efficient and performance of each company in their particular field. As a result, both parties will be responsible for their risks resulting in risk minimization as all will be highly considerate of their risks.
Market research carried out by the firm will result in the ascertaining of the various types of risks available giving the firm a better chance to negotiate its risks with its stakeholders as it is well known which risk is associated with who and how they are caused as well.
International Logistics would also want to negotiate the risks with its container company in case of failure caused by the containers it has bought. It is most likely that a defect will always happen especially to the specialized containers which may in some instances contain refrigerators.
Works Cited
Ross, David O. “Corporate Analysis of SR International.” Personal interview. 27 Nov.
2013
