Dean Kashiwagi - Best Value
Who is Dean Kashiwagi? - For over 10 years, Best Value Procurement has been used in the Netherlands. Best Value Procurement, briefly called BVP, approaches the purchasing process from a completely different angle. The traditional way of purchasing (procurement) in which the lowest price particularly is determinant for the outcome of a tender seems to be outdated. As a result, BVP does not depend on entering a low price only, but is more focussed on identifying and utilizing a suppliers expertise.
Dean Kashiwagi - Founder of the Best Value Methodology
Performance Sales, the Dutch indication for this phenomenon, is coming from the USA and changed how procurement is sourcing for goods and services. Any new philosphy or process has, of course, been thought of by someone. The founding father of the Best Value approach Best Value Procurement is the American Prof. Dr. Dean Kashiwagi. Dean Kashiwagi is a Professor at Arizona State University in Phoenix. He has a very clear message when it comes to purchasing processes. His learnings summarizes a substantial simplification of the purchasing process. It is not the client who needs to have expertise, but the supplier. In fact, he proposes that buyers continually put the world on top by prescribing all kinds of minimum requirements.
Dean Kashiwagi The client shoud identify metrics based on "dominant information" to identify the suppliers knowledge and performance. Obviously, it is up to the supplier to prove that he is also the most appropriate partner to win the tender and have a contract awarded. Where, in the traditional way of purchasing, quotes are offered to the extent of complete books, Best Value Procurement is intended to limit the offer to a few pages, minimizing time and effort to identify expertise.
Dean Kashiwagi - Information Measurement Theory
In the above, the "Information Measurement Theory" defined by Dean Kashiwagi plays an important role. This theory is based on a number of fundamental principles, in which minimizing management, direction and control are considered to be strong foundations of Best Value. Regarding trust, Kashiwagi puts transparency above trust. Of course, collarboration must be a basis of trust and partnership. But trust must be proven based on facts and verifiable performance information. This ensures transparency and makes trust in fact subordinate. The emphasis is on preparation in advance, rather than by the client afterwards. The right information is indispensable at BVP. However, Dean Kashiwagi's theory is based on specific information, also referred to as dominant information or verifiable performance information, metrics. Thus, it is not the intention of shedding in superficial general information and terms, but precisely providing targeted information that shows the expertise of the supplier.
To summarize it, we can conclude that Best Value Procurement is an extremely successful way of selecting an expert supplier. There is a great chance that your organization will also get involved into BVP in near future. But of course you do not have to wait. You know that also with non Best Value tenders and/or traditional tenders it is very important to showcase your expertise to clients. This makes the difference. You also avoid being judged only a low price.
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Make sure that you and your organization are ready for this. Make sure you know and practice the way of thinking and acting with regard to BVP in practice and let Dean Kashiwagi be a source of inspiration and motivation.