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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. Check out the Procurement KPI Dashboard now!

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1998 to 2007 to 2024 DND, Virginia and Colgate-Palmolive’s Timeless Formula For Digital Procurement Success

Procurement Insights

Check out the three case references below to learn about the common thread of success over the past quarter century: 1998 – Department of National Defence – Are you chasing solutions or solving problems? Part 1 of 3) 2007 – Commonwealth of Virginia’s eVA – Yes Virginia!

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Is Cisco Really Driving 21st Century Supply Chain Innovation? (Revisiting the 2007 Cisco Post in 2023)

Procurement Insights

EDITOR’S NOTE: This post was originally published in the Procurement Insights blog on December 3rd, 2007 – almost 16 years ago. Recognizing “the challenging piece” is linked” to understanding “the kind of interaction you want to resolve with customers and supply chain partners.”

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Melissa Drew on Fast Talk, AI, and Closing the Gender Gap in Supply Chain

Let's Talk Supply Chain

With a decade hallmarked so far by constant disruption, consumers are more aware of supply chain and how industry shortages , the gender gap in supply chain, and climate events impact their daily lives and local communities. A term that once only resonated with industry insiders is everywhere.

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Are absolute statements like this reckless or responsible?

Procurement Insights

Predicting the exact percentage of procurement roles that may be automated or eliminated by 2035 is challenging, as estimates vary and depend on multiple factors, including technological advancements, organizational strategies, and economic conditions. ProcureTech Investments: Market Growth: The procurement software market was valued at $8.65

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Does technology by itself remove functional silos? Unraveling the o9 Solutions’ Barilla Press Release mystery

Procurement Insights

For that answer, let’s go back to a 2007 post in this blog titled “Yes, Virginia! There is more to e-procurement than software! It is when technology (software) is seen as the primary vehicle to drive results that it becomes ineffectual and mostly irrelevant.

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Winning strategies for distributors and manufacturers during an economic downturn

EazyStock

The right purchasing and logistics strategies give companies an edge during these unique, uncertain times and, during the return “to normal,” a greater competitive advantage and continued growth. With the right strategies in purchasing, logistics and supply chain, you can navigate through a recession and come out as a winner.