Glossary

VALUE ADDED TAX (VAT)

An indirect tax collected by sellers at every stage in the supply chain, based on the value added at each stage of a product’s or service’s production or distribution.

VALUE ANALYSIS

An organized effort directed at analyzing the function of systems, products, specifications, standards, practices, and procedures for the purpose of satisfying the required function at the lowest total cost of effective ownership consistent with the requirements for performance, reliability, quality and maintainability.

VALUE PROPOSITIONS

The attributes of a product or service that makes it attractive to customers.

VARIABLE COSTS

Costs that change with the output of the organization.

VARIANT BID

A tender offer that does not quite match the specification of contract terms, but has been authorized as a secondary offer from a supplier. It is used to see if the proposed specification and contract terms can be improved upon via competitive offers and must be authorized by the purchaser as part of the invitation to tender.

VENDOR

Someone who sells something; a “seller.”

VENDOR MASTER DATA

Vendor Master Data is the enterprise main source of vendor-specific data. It includes information on vendors from which a company can procure, or can sell. A vendor master record contains information such as vendor’s name, address, etc.

VENDOR-MANAGED INVENTORY

An agreement between an organization and a supplier where the supplier is given control of ordering (replenishment) decisions.

VENDORS LIST

A list of names and addresses of suppliers from whom bids, proposals and quotations might be expected. The list, maintained by the purchasing office, should include all suppliers who have expressed interest in doing business with the government.

VENTURE CAPITALISTS

Specialist companies that invest in businesses (particularly start-ups).

VERBAL COMMUNICATIONS

Using the spoken or written word to convey information, for example face-to-face or on the phone, reports, e-mails or posters.

VERTICAL INTEGRATION

When one organization in a supply chain moves into a different stage of that supply chain, either by starting its own business or by acquiring an existing one.

VETERAN-OWNED SMALL BUSINESS

Is a small business that is at least 51% owned by one or more veterans or in the case of any publicly owned business, at least 51% of the stock of which is owned by one or more veterans.

VETERAN’S BUSINESS ENTERPRISES (VBE)

A VBE is defined as a veteran who has served in the active military, naval or air services and who was discharged or released under conditions other than dishonorable. Active-duty service is defined as active duty in the United States Army, Air Force, Navy, Marine Corps, or Coast Guard for any length of time and at place home and abroad. A veteran or group of veterans must have 51% ownership and control of the business.

VIOLATION

Breaching an agreement, policy or code of conduct.

VIRGIN PRODUCT

A product that is made with 100 percent new raw materials and contains no recycled materials.

VISION STATEMENT

A statement describing the future desired state of the organization.

VOLATILE ORGANIC COMPOUNDS (VOCs)

Compounds that evaporate easily at room temperature and often have a sharp smell. They can come from many products, such as office equipment, adhesives, carpeting, upholstery, paints, solvents, and cleaning products. Some VOCs can cause cancer in certain situations, especially when they are concentrated indoors. VOCs also create ozone, a harmful outdoor air pollutant.