Differentiate Between Value Analysis and Vendor Analysis

Question

Examlex · Accepted Answer

The Answer is Value analysis examines each component of a purchase in an attempt to either delete the item or replace it with a more cost-effective substitute.
Example: Airplane designers have long recognized the need to make planes as light as possible.Value analysis supports using composite materials such as Kevlar in airplane construction because it weighs less than the metals it replaces.The resulting fuel savings are significant for buyers in this marketplace.
Vendor analysis carries out an ongoing evaluation of a supplier's performance in categories such as price,EDI capability,back orders,delivery times,liability insurance,and attention to special requests.In some cases,vendor analysis is a formal process.Some buyers use a checklist to assess a vendor's performance.A checklist quickly highlights vendors and potential vendors that do not satisfy the purchaser's buying requirements.
Example: Vendor analysis helps the airlines to evaluate the proposals of vendors supplying materials to check if they suit their needs.

Differentiate Between Value Analysis and Vendor Analysis

Definitions: