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Cost Performance Index (CPI): What is it and How to Calculate it?

SCMDOJO

Introduction As global supply chains evolve, ensuring cost efficiency is crucial. One way to assess the cost performance of any function within the supply chain is through Cost Performance Index (CPI). Below are some key areas where CPI can improve supply chain efficiency: 1. A CPI of 0.83

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What Exactly Is Procurement? And What is Purchasing?

Supply Chain Game Changer

Check out What Exactly Is Supply Chain Management? Supply Chain Opz characterizes Purchasing as such: “ Purchasing refers to the process by which a company contracts with third parties to obtain goods and services required to fulfill its business objectives in the most timely and cost-effective manner” [link].