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Performance-Based Logistics (PBL) aligns OEM service providers and customer interests by focusing on equipment performance, not spare parts. Unlike transactional models, PBL incentivizes reliability and uptime. The DoD has favored PBL for two decades. Success relies on measurable metrics like part availability and backorder age, but managing PBL requires advanced tools. PTC’s Servigistics uses Monte Carlo simulations to model supply chains, predict risk, and optimize penalties and incentives. Cash flow models guide contract strategies, ensuring win-win outcomes. Continuous improvement is key, especially with disruptions like COVID-19. Servigistics helps OEMs quantify risks, improve reliability, and maximize ROI in PBL programs.
