Performance-based financing (PBF) can be defined as cash or non-monetary benefit that is given for measurable actions or achievement of a defined performance target. In theory, PBF could help strengthen supply chains by linking performance to rewards. PBF is often used in commercial supply chains; it is increasingly being used to improve health care service delivery worldwide. This document details how using performance-based financing in public-sector supply chains can help solve performance problems, eliminate bottlenecks, and ensure commodity availability. This report was written by JSI's USAID | DELIVER PROJECT in 2012.
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