Which activity would most likely be considered value-added in a procurement process?

Which activity would most likely be considered value-added in a procurement process?

• A. Gathering customer feedback that informs product improvement
• B. Reworking an order due to error
• C. Filling out multiple redundant forms
• D. Approving a reversal

Answer: (A)

In procurement, value-added work is activity that directly improves the product or service or provides information that leads to a real improvement the customer would pay for. Gathering customer feedback that informs product improvement fits this because it creates actionable insights that drive better quality and fit with customer needs, increasing value for the customer and potentially reducing issues later. Reworking an order due to an error is wasteful—resources are spent fixing something that didn’t add new value. Filling out multiple redundant forms adds administrative overhead without changing the product or service. Approving a reversal may be necessary for accuracy, but it doesn’t create new value for the customer. Therefore, gathering customer feedback that informs product improvement is the best example of value-added activity.

In procurement, value-added work is activity that directly improves the product or service or provides information that leads to a real improvement the customer would pay for. Gathering customer feedback that informs product improvement fits this because it creates actionable insights that drive better quality and fit with customer needs, increasing value for the customer and potentially reducing issues later. Reworking an order due to an error is wasteful—resources are spent fixing something that didn’t add new value. Filling out multiple redundant forms adds administrative overhead without changing the product or service. Approving a reversal may be necessary for accuracy, but it doesn’t create new value for the customer. Therefore, gathering customer feedback that informs product improvement is the best example of value-added activity.