Latest / The Buyer's Side with Fexingo: Procurement, Sourcing, and B2B Purchasing Decisions
How Performance-Based Contracts Cut Logistics Costs 16%
In this episode, Lucas and Luna explore how procurement director Sarah Chen of Apex Manufacturing used performance-based contracting to slash logistics costs by 16 percent while boosting on-time delivery from 93 to 99.2 percent. Rather than negotiating unit prices alone, Sarah tied supplier compensation directly to outcome metrics like delivery reliability and damage rates. The conversation covers contract structure, supplier resistance, real-time dashboards, and the surprising win-win for top performers. They also touch on how this approach shifts the negotiation dynamic from adversarial to…
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