Which of the following incentives encouragesinnovation?
A.
Gainshare
B.
Pain share
C.
Bonus payments
D.
Service credits
The Answer Is:
A
This question includes an explanation.
Explanation:
Gainsharemechanisms reward suppliers for achieving cost savings, process improvements, or innovation that benefits both parties. By sharing the gains, suppliers are motivated to propose creative solutions.
[Reference:CIPS L5M15 –Supplier Incentives and Relationship Development (Gain/Pain Share Models)., ]
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