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The Steps for Measuring the Value
Step 1
Step 2
Example: Vendor Managed Inventory
Step 3
Worksheets
Getting The Numbers
Summarizing The Results
Step 4
Getting Started
Step 4: Total Annual Cost of Ownership Report

After each event is measured, it should be added to the results of other services provided within the same year. When all of these events are summarized, they represent the total value provided for that year. These results should be provided to all appropriate customer personnel, and consideration should be given to providing these results in both graphical and tabular formats. For example, in the diagram below the top half shows quarterly improvements in bar graph format, while the bottom half provides the quarterly detail for each event.

Additionally, it is important to document the results for both the current year and the total cost impact for the relationship to date. Many companies only give the supplier credit for the improvements made in the current year. However, it is important to document and show the total impact the supplier has had over the entire relationship.