Value is a combination of utility and cost, with utility being the usefulness of a product/service, and cost representing the total cost of ownership.
In our Value management courses we identify and discuss 12 main Value Improvement levers.
These are points where a buyer can lower cost and/or improve utility.
Some obvious examples of value improvement levers are:
- Improving Specifications
- Increasing Competition
In reality more then 12 can be found, but by understanding these, buyers will be able to identify additional levers.
Value improvement levers are essential for buyers when trying to add more value and should definitely be used in category and sourcing strategies.
The new Procurement Academy courses on Value Management will explain 12 main Levers, and will cover the value management process:
- Identifying potential levers
- Researching the viability
- Selecting the most promising levers
For a preview of our newest courses, check our Youtube channel: