Best value

Best Value is a term used in various fields, including business, economics, and public procurement, to denote the most advantageous balance of cost, quality, and sustainability. The concept of best value is often used to guide decision-making processes, particularly in the procurement of goods and services.

Definition

The term "best value" is often defined as the most advantageous combination of cost, quality, and sustainability for goods or services. This concept is used to guide decision-making processes, particularly in the procurement of goods and services. The aim is to achieve the highest possible value for the lowest possible cost.

Application in Business

In the field of business, best value is often used as a guiding principle in procurement processes. Businesses aim to achieve the highest possible value for the lowest possible cost, taking into account factors such as quality, cost, and sustainability. This approach can help businesses to achieve their strategic objectives, while also ensuring that they are getting the best possible return on their investment.

Application in Public Procurement

In the field of public procurement, best value is a key principle. Public sector organizations are often required to demonstrate that they are achieving best value in their procurement processes. This involves considering a range of factors, including cost, quality, and sustainability, and making decisions based on the most advantageous balance of these factors.

Best Value vs Lowest Cost

While the concept of best value is often associated with the idea of achieving the lowest possible cost, it is important to note that this is not always the case. In many cases, the best value may not be the cheapest option, but rather the option that offers the best balance of cost, quality, and sustainability. This approach recognizes that the cheapest option may not always be the best option in the long term.

See Also

• Value for money
• Cost-effectiveness
• Public procurement
• Sustainable procurement