Common use of Value Proposition Clause in Contracts

Value Proposition. Buyer expects a successful sourcing Seller’s business process value proposition to extend beyond cost reductions related to labor rates. Sellers must utilize cost-saving world class process improvement methodologies such as CMMI Level 5 and lean process improvement strategies to streamline or transform business processes, and create an interaction model that does not drive added cost within Buyer for administration or infrastructure. Savings from these quality improvement initiatives drive reductions in Seller operation costs that can be passed on to Buyer.