Value Propositions

TermiKnowledge - Supply Chain, Procurement and Inventory Terminologies
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What is Value Propositions? A value proposition is essentially a guarantee of value to be provided, communicated, experienced, and agreed upon. More importantly, it is an internal expectation by the client about how the value is going to be acquired, experienced, and delivered. Value creation/delivery involves two elements: An effort to identify the client's needs and the ability to create a viable solution meeting those needs via a supply chain management strategy; and an evaluation of the proposed supply chain management strategy by the end-user.

We often talk about creating value with dollar bills on a bumper sticker: The whole idea is to "put value into the future". Effective Value Propositions are those that have a future, and are actionable (meaning they create value over time). In the case of the manufacturer, a great value proposition could be "put value into the long term". This means developing a manufacturing plan that identifies the resources needed, a timeline for acquiring them, and a marketing plan to support the investment needed to realize those resources.

This article has brought forth three different value propositions - each with its own unique selling point, as well as a distinct set of implementation requirements. As you read and consider this information, you will develop a unique plan that addresses your current competitive environment, but will also look for opportunities in the new market place. By doing so, you will increase your chances of success and help sustain your company's competitive advantage.

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