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What is Purchase Price Variance (PPV) and How to Calculate it?

SCMDOJO

Introduction Gardner, (1954) and Huntzinger, (2007) define Purchase price variance (PPV) as a metric used to measure the effectiveness of cost-saving efforts by calculating the difference between the planned cost (standard pricing) allocated for purchasing activities and the actual cost incurred.

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ConvergentIS And SAP Ariba: The Start Of The Metaprise (Intake/Orchestration) Shift

Procurement Insights

EDITOR’S NOTE: In 2007, I wrote what is still one of the most popular posts on this blog: “ The Ariba Interviews: Re-engineering the Future ofOn-Demand. Key Products: Ariba Network, Spend Analysis, Strategic Sourcing Suite, and Contract Management. SAP Ariba: Large enterprises with complex global supply chains.