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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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What does a 2015 article have to do with Hershey’s 2025 acquisition of LesserEvil for $750

Procurement Insights

Prompted by a question I had received from one of my readers regarding the impact of an M&A on procurement, and in particular the departments relationship with suppliers, I thought that I would share the following with you. There is more to e-procurement than software (Part 2) see the link in the Web Resources Section.

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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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Danone’s COO Mike Sloboda’s “3 Tips For Supply Success” Nails It!

Procurement Insights

FIRST, SOME BACKGROUND INFORMATION In August 2007, I wrote an article titled “Procurement’s Expanding Role and the Executive of the Future.” They said that out of his organization’s 20,000 suppliers, only a few (i.e., 2007 – Commonwealth of Virginia ’s eVA – Yes, Virginia!

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When It Comes To AI in 2023, We’re Going To Party Like It’s 1998

Procurement Insights

As an introduction or lead-in to that old post, I want to share the following excerpt from an article written in June 2023 responding to the question – What is AI in supply chain in 2023? “AI assesses supplier performance data, quality records, and market intelligence to revamp supplier selection and management.

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S&OP, a vision for the future. The expert interview series #7

Supply Chain Trend

To get some answers for S&OP practitioners, Niels van Hove founder of Supply Chain Trend, interviewed a group of S&OP leaders. Supply Chain Trend will publish a weekly Q&A with these S&OP leaders. Being early in my supply chain career, I thought this should not be too bad to do.

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Seasoned Leadership in Action™ – An Interview with Stephany Lapierre, CEO at tealbook!

Supply Chain Game Changer

Imagining the Supply Chain of the Future! At Supply Chain Game Changer we believe in sharing experiences and expertise from people in every industry and from across the globe. As such we have introduced our “Seasoned Leadership in Action™” Interview series at Supply Chain Game Changer.