Review of the product specifications
The “EDI” and “Product Specification Review” opportunities scored highest amongst all (Figure 3). Implementation of the EDI could result in significant efficiency gains (estimated £400,000 savings); nevertheless, considerable capital investment was required and hence the need for an enduring cost/benefit sharing agreement between the distributor and the public organization.
The two companies decided not to implement EDI since the remaining length of the contract did not cover the payback period of the required investment.
On the other hand, the “Specifications Review”would improve the supply chain effectiveness (i.e. consumer focus) while required nil investment.
This paper, solely, focuses on the “Review of the Product Specifications” to explain how the FVCA improves supply chain effectiveness.