Risk-Shared Partnerships

Trend Definition 

What is the essence of this trend? What is its impact? 

• Essence: Risk-Shared Partnerships (RSPs) describe a collaborative arrangement between buyers and suppliers to outsource certain tasks and share connected risks, for instance the design of a specific part of the finished product
• Impact: Buyers can focus on their core competencies since they can outsource certain activities while suppliers are able to benefit from newly rising market opportunities in exchange for a level of risk

Trend Drivers 

Why is this trend emerging now? What’s changing? 

• Synergy of Innovation and Cost Management: RSPs are not just about mitigating risks; they are also breeding grounds for innovation, leading to cost-effective practices and processes that benefit all involved
• Trend of Global Specialisation: A trend shows the rise of global specialists, meaning that companies focus on a rather narrow set of activities and products that they market globally
• Complexity and Interdependency in Modern Supply Chains: The high level of complexity in today’s supply chains requires means to ensure stability and reduce vulnerability

Use Cases 

How to apply this trend? 

• Partnership Agreement for Project Development: Partial contribution of project costs
  Example: ASML partnered with five main partners to realise its TWINSCAN project, costing approx. EUR 1bn and requiring its procurement team to directly communicate with their partners, ensuring complete and on-time delivery of goods
• Collaboration on Innovation: Competitors join forces to develop innovative technology
  Example: BMW and Toyota partnered to develop hydrogen fuel cells, sharing financial risks and requiring their procurement departments to constantly align their tasks

Procurement Relevance & Response Strategies 

How should Procurement adapt its Processes, Organisation, and Strategy?

• Create Interfaces: RSPs require a frequent and detailed exchange of information between supplier and procurement team, therefore, IT systems must enable interfaces that connect multiple entities
• Close Cooperation: To maximise the benefits of RSPs, procurement teams, and suppliers should closely work together to identify opportunities and risks