Dictionary of Procurement Terms

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Search Results: 1-10 of 47 results for “V”

  • Valuation Method

    CANADIAN Method by which the replacement cost of a piece of equipment is determined.

  • Value

    A fair return on investment.

  • Value Added

    1. The increase in worth of a product or service as it moves through various stages of production and distribution. 2. What contribution a service function within an organization can make toward return on investment, increased productivity, or improved customer service. (Business, 2002)

  • Value Added Reseller

    A business entity that purchases a product from a manufacturer, adds enhancements, and then sells it to another organization. Many large computer manufacturers have agreements with resellers to deliver, install, and configure their equipment. (Business, 2002)

  • Value Added Tax (VAT)

    A tax based on the value added during each stage of a product’s production or distribution. Common throughout the European Union.

  • Value Analysis

    An organized effort directed at analyzing the functions of a product or service including specifications, standards, practices, and procedures with the intent to satisfy the required function at the lowest possible cost without impacting functional need and suitability. (Nash, Schooner, O’Brien, 1998)

    See Also: Value Engineering (VE)

  • Value Based Pricing

    A business strategy that sets a product or service price based on the benefit it provides the customer, rather than on the cost of the product, market price, competitor, or historical price. Value based pricing includes advertising or surveying to determine or measure the anticipated benefit the customer will receive and align the value delivered. Pricing is based upon the perceived or actual value that the end user will receive.

  • Value Engineering (VE)

    A technique by which contractors may 1. voluntarily suggest methods for performing more economically and may share in any resulting savings or 2. be required to establish a program or identify and submit methods for performing more economically. (Nash, Schooner, & O’Brien, 1998)

    See Also: Value Analysis

  • Value Incentive Contract

    A fixed-price contract with a provision for rewarding the supplier for faster delivery or superior performance.

  • Value Proposition

    A statement by an organization expressing the way in which it can provide value for a prospective customer. A marketing tool that explains why customers can benefit from a company’s products or services. (Martin & Miller, 2006)
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