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When calculating risk we cannot zeroise the risk rather we can manage the risk in such way that minimize the effect of losses, may it be a financial, production, logistics and etc. Especially in Supply Chain of FMCG, one can only take calculated risk. In such times when recession cycle have reduced to every 2 years, and companies continously revisit their cost numbers, short term to one time contract is preferrable. Long term association with one supplier can always get risky as the supplier may always ask enhanced rates. I suggest there should be multiple suppliers for companies. For companies who operates on single supplier based where their is only one supplier in the market, then the co...
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