Some strategic supplier agreements reward the highest performing suppliers with a share of the cost reductions resulting from supplier improvements,additional purchasing contracts,or contract extensions on existing contracts.

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Quizplus · Accepted Answer

This is true. Strategic supplier agreements often include incentives for suppliers who perform well, such as sharing the cost savings resulting from supplier improvements, additional contracts, or contract extensions. This motivates suppliers to continuously improve their performance and helps build long-term relationships with them.

Some Strategic Supplier Agreements Reward the Highest Performing Suppliers with a Share