RIM (REMEDY INCENTIVE MODEL)

RIM describes a model used to validate the quality of service provided by suppliers for any type of measurable service Based on the level of service the model provides incentives or remedies (Penalties) to the supplier If the supplier fails to meet a targeted goal, supplier pays to client a penalty If supplier exceeds targeted goal client agrees to pay an incentive to supplier The model is based on a partnership approach between client and supplier according to the new direction in outsourcing strategies The model is flexible to take one or various Key Performance Indicators (KPI) into account to value a service At certain intervals (typically every month) the level of service is measured for all KPIs Positive (for exceeding) and negative (for failing to meet) points are assigned to each KPI All points are added up and converted to percent points of invoice amounts If total points are positive client pays supplier, if total points are negative supplier pays client