Leading Procurement organizations use gainsharing agreements to drive collaboration between internal business units and select suppliers. Develop should-cost models to learn about total supply chain costs, supplier economics and cost-reduction opportunities. Improve supplier participation by assuring them that data sharing for should-cost modeling will not be used to beat suppliers on pricing.
Negotiate Gainsharing Agreements to Drive Collaborative Cost-Reduction
Use Should-Cost Modeling to Investigate Supply Chain Costs
Applicability and Implementation
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