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

SCMDOJO

indicates cost inefficiency, signaling a need for supplier negotiations or alternative sourcing strategies. By leveraging CPI in procurement, logistics, inventory management, supplier evaluation, and manufacturing, businesses can achieve greater cost efficiency and financial control. A CPI of 0.83

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What is Supply Chain Management? A Guide to Success

SCMDOJO

Sourcing: Sourcing is all about finding reliable suppliers, negotiating contracts, and managing relationships. It encompasses activities such as procurement, supplier selection, and evaluation. Planning ensures that resources are allocated effectively and that production and distribution meet customer demand.