Eliminating Excel in Purchasing Metrics Purchasing Skills 
Supply Chain Shaman
JANUARY 7, 2025
” Traditional planning models optimize functional processes to improve cost and customer service. The problem is that the reduction of costs within one function does not necessarily drive value. In today’s architectures and functional metrics, value optimization does not exist. You are right. The reason?
Supply Chain Shaman
MAY 21, 2024
In follow-up qualitative interviews, one of the largest issues with organizational alignment was metric definition and a clear definition of supply chain excellence. For example, a cost improvement in one function could raise the costs in another. Error is error, but is it the most important metric?
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SCMDOJO
MARCH 24, 2025
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.
Supply Chain Shaman
MAY 25, 2024
The use of orbit charts allowed me to see the patterns of performance at the intersection of metrics over time. We purchase data from Y charts. (A This data source synchronizes corporate reporting across global markets while tracking restatements, name changes, and currency shifts.) Consider Lenovo in Figure 1.
SCMDOJO
JANUARY 9, 2025
Strategic sourcing and innovative solutions are often viewed as two distinct procurement tools, but they should not be seen in isolation. Think of them as apples and gearseach essential and effective on its own, yet when combined; they create a formidable mechanism for achieving procurement excellence.
Supply Chain Shaman
NOVEMBER 21, 2024
(Most of the business networks were hollowed out by venture capitalists or purchased by opportunists. ” My problem is that we move through these hype cycles with little accountability for spending and with a major opportunity cost to not redefine work. Or that a focus on cost reduction can actually undermine value creation?)
Supply Chain Shaman
DECEMBER 15, 2022
.” Or “push a shift from a focus on cost to drive value?” ” Followed by “How are you organized, and what defines functional excellence? And, how do you tie functional excellence to corporate value?” Functional Metrics. Understanding of Supply Chain Excellence by the Executive Teams.
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