Introduction

This introduction presents an overview of the key concepts discussed in the subsequent chapters of this book. The book presents procurement frameworks that consider the total value of supplier contributions in the offer evaluation process. It also presents anecdotal evidence that sourcing criteria considering the total value of benefits lead to increased firm performance and allow to create value – for example, environmental benefits – that traditional procurement models typically do not create. The book provides examples of quantified value propositions, for both business-to-business (B2B) services and B2B products. It provides a case study on how to quantify intangible elements with a value quantification tool. The book provides a case study on how to quantify intangible elements with a value quantification tool. It obstacles that companies face in the process of quantifying value: different assessments of the supplier’s value creation potential, inability to quantify value, and inability to defend value vis-à-vis procurement.