There has been tremendous growth in the momentum and application of performance-based incentive (PBI) interventions amongst development partners and country governments. This has been fueled by promising results from pilot programs. There are several efforts now underway to scale up existing programs. However, most programs have focused on improving access to essential health services, and not specifically on public health supply chain strengthening. This is where we come in.
We would like to introduce a new training module on how to identify opportunities for using PBI interventions in your supply chain. This training toolkit introduces the basic PBI strategies for improving public health supply chain. It includes everything trainers need to conduct a workshop, from a training PowerPoint and facilitator notes to a sample agenda and flash cards that define commonly used acronyms and terminologies. You can also use the toolkit to train yourself on these concepts. We hope you will find the toolkit engaging and informative.
Download the PBI tool kit here.
To learn more about PBI for supply chains, visit the USAID I DELIVER PROJECT web site at: http://deliver.jsi.com/dhome/whatwedo/commsecurity/csfinancing/csperfbasedfinancing
To get you started, here is a quiz that you can use to check how much of the information you already know. If you train others you can also use this quiz to evaluate workshop participants. The answers will be published on IAPHL list serve January 6, 2014. Not yet an IAPHL member? Become one at by following the link on the home page.
1. Fill in the blanks below:
“Performance – based incentives refers to _________ or ______ benefits provided against measurable actions or achievements of a defined _______
2. A legal or formal agreement governing the procurement of services which also stipulates specific performance goals to be achieved in a specified period by the service provider is an example of:
a. Cash on delivery
b. Conditional cash transfer
c. Performance based contracting
d. Output based aid
3. Regarding the types of performance – based incentive used in commercial sector supply chains, match the list of definitions (Box A) below with the correct acronyms (Box B).
I. Supply chain partner shares a percentage of their revenue with one or more third party logistics providers based on achieving mutually beneficial performance goals
II. Individuals workers in the supply chain are rewarded for specific, measurable performance goals
III. Rewards for partners in the supply chain when they achieve a measurable supply chain specific performance goal (e.g. on-time delivery)
IV. Discounts or additional free products offered by a supplier to customers for purchasing high volumes
A. Supply chain performance based incentives (SCPBI)
B. Gain sharing
C. Sales based performance offers (SBPO)
D. Individual payment increases, incentives and bonuses
4. Fill in the blank below:
___________ is the use of donor aid as a financial reward to governments or non-governmental organizations for achieving specific performance outcomes
5. The term performance based financing is often used synonymously with:
a. Performance based incentives
b. Pay for performance
c. Results based financing
d. All the above
6. When setting performance targets for a PBI scheme aimed at improving supply chain performance, which of the following criteria are important? (Select all that apply)
a. Performance targets must be achievable within the duration of the incentive scheme
b. Supply chain personnel are able to make changes in their work that will enable them to
achieve the performance targets
c. There is an objective way of measuring the performance target, for example through
reliable routinely collected data
d. Selected targets are tied to clear supply chain performance problems that are generally
accepted as important by the stakeholders
State whether the following statements are true or false:
7. It is important to clearly identify specific supply chain problems that will be the target of a PBI scheme. _______
8. When selecting a target group for a PBI scheme, it is not important to identify a person or group of people who are responsible for the low level of performance of the supply chain ____
9. It is important to make arrangements for assessment of the level of performance of the supply chain tasks that are the target of a PBI scheme before the scheme is implemented ___________
10. Designers of PBI schemes should not waste time analyzing the relationships between different stakeholders and their responsibilities in the supply chain ______________
Answers will be posted January 6, 2014!