It’s time to shift your focus from short-term fixes to long-term goals. Are you targeting uptime, fuel savings or lower emissions? What if achieving your target was guaranteed? With outcome-based business partnerships, it is.
A new approach to maritime service agreements with big-picture thinking and long-term goals at its core is on the horizon. Taking a holistic instead of a transactional approach is the best way to:
But this requires a change of mindset and a new way of thinking about service agreements. An outcome-based business partnership will help you get the best bang for your buck from your investments in hybrid systems, future fuels and novel energy-saving technologies.
In an outcome-based business partnership, your supplier guarantees that a certain quantifiable outcome will be achieved. For example:
Focusing on a quantifiable metric instead of micromanaging individual systems and technologies provides a solid framework to achieve your goals. If your agreed outcome is achieved then you and your supplier share the rewards; if it isn’t then you share the losses.
This is what makes an outcome-based partnership a genuine commercial collaboration instead of a one-way street. It’s based on joint key performance indictors and shared benefits.
An outcome-based business partnership will help you get the best bang for your buck from your investments in hybrid systems, future fuels and novel energy-saving technologies.
The three main steps to building a viable outcome-based partnership are:
For example, if your goal is to cut fuel consumption the agreed metric could be fuel efficiency, or tons of fuel burned over a specific period. If your fuel consumption drops during that period, you and your supplier share the financial gains from the common savings pot.
Because they’re playing for the same side, your supplier will be doing everything they can to make sure the outcome is realized. This might mean:
This is in contrast to a regular service agreement, where your supplier gets paid for these kinds of activities whether you succeed or not.
Wärtsilä’s vision for outcome-based partnerships is based on a series of building blocks. These start from the equipment and powertrain level and go all the way up to the overall vessel level.
The powertrain-level building blocks are:
The vessel-level building blocks are:
Like a well-tailored suit, these building blocks are combined into a whole that is far greater than the sum of its parts to maximise your profitability.
This all sounds promising, you might think, but is it anywhere near becoming a reality? The answer is yes. Several vessel owners and operators are already onboard with this new way of thinking. Let’s look at a few real-world examples:
Whether you’re targeting uptime, fuel savings, or lower emissions, with an outcome-based partnership you can invest with the extra peace of mind that a guarantee brings. This true win-win approach is set to revolutionise the maritime service agreement landscape.
Want a cast-iron guarantee for fuel savings, emissions reduction, or vessel uptime? Then read our white paper: Outcome-based business partnerships – Why they deliver superior results in complex marine markets.