Gartner Research

How Smart Shippers Use Contractual Mechanisms to Incentivize 3PL Performance Excellence

Published: 30 January 2019

ID: G00308676

Analyst(s): David Gonzalez, Courtney Rogerson

Summary

A well-designed contract should incentivize engaging parties to achieve mutually beneficial outcomes. This research will provide supply chain leaders responsible for 3PL contracts with insight on contractual elements that can be used to help deliver sustainable 3PL performance excellence.

Table Of Contents
  • Key Challenges

Introduction

Analysis

  • Conduct a Comprehensive Content Review and Assessment of Existing 3PL Contracts
  • Create a Link Between Price and Service Performance With Contractual Mechanisms That Focus on 3PL Accountability
    • Performance-Based
    • Gain Share
    • Outcome-Based, Shared Risk-Reward
  • Implement Those Contract Mechanisms That Align Best to Your Contractual Development Stage and Desired Outcomes

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