SIG Inside Sourcing — Dec. 2016

Performance-based and Vested Sourcing Business Models: Gainsharing in a New Dress?

Article by Kate Vitasek published 16 December in SIG’s Inside Sourcing Newsletter.

I often get the question, “Is Vested Outsourcing really gainsharing in a new dress?” The answer is no. On the surface, gainsharing, a performance-based agreement, and a Vested sourcing business model all have a common goal: creating incentives (or penalties) designed to share value with suppliers for achieving lower costs or better performance…

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