Performance and compliance monitoring
This chapter explores how performance and compliance monitoring is essential to strengthening index-linked contracts and shipper / supplier relationships.
- To avoid errors and check for manipulation, it’s essential the chosen provider has strict data quality rules.
- Audits should be conducted by all parties to ensure price adjustments reflect the methodology used.
- As part of the contract, dispute resolution mechanisms should be agreed.
- Surcharges should be made clear so there are no hidden surprises hidden within index adjustments; these should be documented along with rate adjustments.
- Supplier performance terms should be monitored by all parties so areas for improvement can be captured, and any non-compliance recorded to support contract adjustments and operational adjustments.