Encouraging Security Enhanced Supply Chains

Another school of thought maintains that, while security may have a negative effect on cost performance in the short-run, eventually security will pay for itself 

Associated cost rednctions achieved through the secondary benefits. 

The consequence of this dilermna is even more pronounced when one considers that price and deUvery rehabihty are two of the most important criteria used by firms to select supphers (Lehmann and O Shaughnessy 1974 Evans 1982 Wilson 1994). However, if customers value security to the extent that they are willing to pay a higher price and/or accept lower level dehveiy in remrn for supply security, then the suppher has a greater incentive to implement security measures. 

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