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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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Essential Supply Chain KPIs to Track for Enhanced Decision Making

SCMDOJO

Understanding how your Procurement and Supply Chain KPIs are performing isn’t just a nice-to-have; it’s essential for survival and growth. But what if you could get a clear, birds-eye view of your core performance without investing in complex, expensive software? Are you truly getting the best value?

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Reducing Cost Per Delivery: and Interview with FarEye

Logistics Viewpoints

First, what are some things companies can do to reduce delivery costs and how does technology play a role? Second, how can retailers use technology to enhance the customer experience? Reducing Cost per Delivery Reducing cost per delivery is a critical KPI for companies. Technology can play a big role.

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7 Strategic Performance Business Practices with 3PL KPIs and 4 KPI Problems to Solve

GlobalTranz

We continue our series on understanding the 3PL KPIs (Key performance indicators) from 3PL consultant, Chuck Intrieri of The Lean Supply Chain as it relates to the engagement with a 3PL. We began our series first writing about the 9 key broad and somewhat soft topics to understand in effective KPI Management.

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The Role of Centers of Excellence in Supply Chain Transformation

NC State SCRC

In 2025, we will likely see many supply chain organizations creating multi-purpose COEs that carry out several different processes. In the P2P space, it is also important to note that the role of robotic process automation (RPA) and AI will further enhance the capabilities of COEs to efficiently manage transactional work.

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6 KPIs That Influence Inventory Optimization

Silvon Software

By leveraging analytics and key performance indicators (KPIs), manufacturers can optimize inventory, reduce waste, and boost profitability. Tracking inventory flow and performance across your supply chain is a must. The right KPIs depend on your companys unique needs and goals. But what exactly should you measure?

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5 Strategies For Improving Distribution Operations: An Essential Guide

SCMDOJO

This guide provides you with all the tools you need to make significant positive changes in a few simple steps. Don’t forget to check out our best practices , tools , and a list of helpful supply chain resources on the website! Optimizing inventory can also be achieved by leveraging technology and data analytics.