Which of the following areincentivesto increase supplier performance?Select TWO
A.
Gain share
B.
Pain share
C.
Bonus payments
D.
Service credits
The Answer Is:
A, C
This question includes an explanation.
Explanation:
Gain shareandbonus paymentsare positive incentives that encourage suppliers to perform beyond baseline requirements. Gain share rewards suppliers for creating mutual cost savings or innovation benefits, while bonus payments recognise exceeding service or delivery targets.
In contrast, pain share and service credits are deterrents for underperformance, not motivators.