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Performance-Based Contracts: The Next Step for the Container Handling Industry

Many other industries have already innovated their business models by transitioning to outcome-based contracts, either with availability or performance guarantees. In a performance-based contract, a service provider can offer a complete solution incorporating equipment, software and services under a rate that is tied into the terminal’s operational performance based upon agreed key performance indicators.

For terminals, performance-based contracts offer a number of potential advantages including payment for actual performance or usage, reduced risks due to lower capital investments, and continuous improvement through the service provider’s incentivised commitment to improve productivity.

Guenter Schmidmeir, SVP, Sales & Marketing, Kalmar Automation Solutions

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