Remove Purchasing goals Remove Sourcing Remove Supply Chain Efficiency
article thumbnail

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

SCMDOJO

PPV Calculation: PPV= (Standard Price – Actual Price) * 5000 PPV = ($120.00 – $142.00) *5,000 PPV = -$110,000 (Unfavorable) Favorable PPV: Favorable PPV occurs when the standard price or estimated cost is higher than the actual price or purchase cost, resulting in cost savings.

Price 69
article thumbnail

Sustainable Purchasing — The Ultimate Guide

Procurement Tactics

Sustainable Purchasing — The Ultimate Guide. Sustainable purchasing might be a term that many people are not familiar with. However, this kind of purchasing is important, especially in the supply chain. . In this article, we will talk about what sustainable purchasing is. What is Sustainable Purchasing?