Implications of Performance-Based Contracting on Logistics and Supply Chain Management: A Multi-Method Approach
Description:
Performance-based contracting (PBC) redefines the relationships between suppliers and buyers and differs from traditional contracting approaches with its reward/payment scheme, emphasis on the performance outcomes, increased supplier autonomy, and transfer of risk and responsibilities to suppliers. Given the 70% of life cycle costs of products/systems reside in sustainment, PBC has led to substantial improvements in availability, maintainability, reliability, and thus total cost of ownership of…
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Date:
August 2020
Creator:
Celik, Hasan (Professor of management)