If the customer actually gets additional benefit when suppliers exceed a particular service-level metric, then the banking concept is fair. The revised deal featured a more rational and traditional approach of the supplier getting paid for acceptable performance and having to issue credits for below acceptable performance. Over the years, I've found that cozy long-term relationships can actually be a detriment to the customer. This especially happens when the customer is dependent on the supplier to perform a vital business function. A high degree of reliance on a supplier can cause the customer to overlook or accept things like new contract terms and service levels that should be re-examined from time to time just to make sure the deal is still fair.
Comfort can and does lead to the delivery and acceptance of poor performance.
It's important to improve the status quo in contract renegotiations even when everything is working well. Developing a mind-set that embraces continuous improvement is a great way to ensure you always get what you're paying for. The Association of High Tech Acquisition Professionals. The downturn in the tech economy isn't as gloomy as you might expect. West Coast Bureau Chief Pimm Fox offers a list of 10 positive aspects from the tech wreck.