GlossaryEN1 min readUpdated: Jun 24, 2026

Gainsharing Logistics Agreements

Gainsharing logistics agreements are contracts under which a logistics service provider and its client formally split cost savings generated through joint optimisation.

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Last updated: 24 June 2026Published: 19 June 2025

Source: https://www.investopedia.com/terms/g/gainsharing.asp

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Logistics Concept

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Definition & Explanation

Gainsharing logistics agreements are contracts under which a logistics service provider and its client formally split cost savings generated through joint optimisation. When a carrier or 3PL undercuts agreed cost targets – through better freight procurement, load consolidation, or improved asset utilisation – the resulting difference is divided according to a pre-defined ratio: part is returned to the shipper, part is retained by the provider as a performance incentive. Unlike open-book arrangements, which centre on full cost transparency, gainsharing focuses on the shared outcome rather than shared data. These models are most common in long-term partnerships and depend entirely on clearly established cost baselines; without robust benchmarks, any savings claim is difficult to verify and even harder to enforce.