Cost Reduction Sharing Sample Clauses
The Cost Reduction Sharing clause establishes how any savings or reductions in costs achieved during the performance of a contract are to be distributed between the parties. Typically, this clause outlines the method for calculating cost savings, the percentage or proportion each party will receive, and the process for verifying and documenting the savings. For example, if a supplier implements a process improvement that lowers production expenses, both the supplier and the client may share the resulting financial benefit according to the agreed terms. The core function of this clause is to incentivize efficiency and innovation by ensuring both parties benefit from cost-saving measures, thereby aligning their interests and promoting collaborative efforts to reduce expenses.
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Cost Reduction Sharing. As a result of any improvements contemplated by Section 7.1 or otherwise, Kenmec agrees to provide OJO with (a) fifty percent (50%) of any cost savings realized by Kenmec during the first year of implementation with respect to Products that are subject to an SOW and corresponding fully-costed Bi▇▇ ▇f Material and (b) one hundred percent (100%) of any cost savings realized by Kenmec after the first year of implementation with respect to Products that are subject to an SOW and corresponding fully-costed Bi▇▇ ▇f Material. Notwithstanding anything to the contrary in any Services Agreement, Kenmec shall not be entitled to the benefits of any cost reductions with respect to Variable Priced Components.
Cost Reduction Sharing. Flextronics agrees to share any cost savings achieved equally with Agilent for a period of twelve (12) months and thereafter pass through all such savings to Agilent. Product prices will be amended accordingly. Flextronics will demonstrate cost reduction improvements and report such results to the appropriate Agilent Manager at a minimum quarterly, unless otherwise indicated in the Addendum.
Cost Reduction Sharing. Any cost reductions gained through Jabil’s suggestions, whether during a quarterly cost reduction effort review or during the interim thereof, shall be [*], starting from the date of implementation of such change, and ending at implementation of new pricing following the next annual cost review. Upon implementation of the new pricing, [*]. Jabil is expected to make reasonable efforts to implement cost reduction changes (irrespective of who initiated changes) as early as possible. Jabil is expected to provide full account of change implementation, timeline for implementation and the rationale.