Total Value Management (TVM) is a comparative cost metric that quantifies the overall cost of each acquired unit relative to the overall value of the spend category as it relates to the organization's sourcing strategy and supply chain goals. TVM concept not noly takes into account the overall total cost of each acquired unit from a direct, indirect, and quantifiable market cost viewpoint, but the impact costs of deviating from the overall sourcing and supply chain strategies. Neveen Rawat (2009)
Total Value Management (TVM) is an extension of the TCO, and behind the price and the logistics cost takes also in consideration the value of the products/services bought to the Strategic Supply Chain objectives. Lamoreaux, et al. (2008).
Michael Wood (2001)
Total Value Management is the process of delivering superior value to stakeholders in a balanced and sustainable way.Getting to TVM
- Step 1: Strategies
- Step 2: Improvement Initiatives
- Step 3: Feedback and Metrices
Total Value Management - A Knowledge Management Concept for Integrating TQM into Concurrent Product and Process Development. Biren Prasad (2001).
Art: Cost models, Supply market knowledge, and Constraint analysis
Science: Collaboration and analytics