A formal longer-term supplier agreement that combines a relational contracting model with an Output-Based Economic Model. A Performance-Based model drives supplier accountability for output based service level agreements (SLAs) and/or cost reduction targets. A Performance-Based agreement typically creates incentives (or penalties) for hitting (or missing) performance targets.
A formal longer-term supplier agreement that combines a relational contracting model with an Output-Based Economic Model. A Performance-Based model drives supplier accountability for output based service level agreements (SLAs) and/or cost reduction targets. A Performance-Based agreement typically creates incentives (or penalties) for hitting (or missing) performance targets.