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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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The Oldest Procurement Blogs in the Procurement Industry

Procurement Insights

Procurement Insights Launch Date: May 2007 Overview: Authored by Jon Hansen, Procurement Insights explores procurement trends, supply chain challenges, and the impact of technology, with a conversational style appealing to practitioners and executives. Procurement Insights (May 2007): Broad trends, with insights on ethics and AI.

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Procurement’s “Real” Acres Of Diamonds In 2025

Procurement Insights

The Importance of Commodity Characteristic Analyses Over 14 years (11 years from identifying the existence of Historic Flat Line and Dynamic Flux characteristics), we have monitored commodity characteristics to properly align the purchasing processes organizations use to procure goods (and services). office supplies).

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What is continuous, self-cleaning data?

Procurement Insights

Jon Hansen, Procurement Insights (1998 to 2025) Context: DND Implementation and Self-Learning Algorithms DND Background: Hansens DND project (1998-2005) transformed procurement for Canadas Department of National Defence, streamlining purchasing (e.g., DNDs success (2007) reflects Hansens user focus, cutting 50-70% failure rates.

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From Candy To Kidneys: The Impact of Spinoffs And M&As On Procurement And Supply Chain

Procurement Insights

Paul Nilsen, Purchasing Manager – Willis North America, New York, NY ** ** (NOTE: Yes, I do keep track of all the professionals who have interacted with Procurement Insights since the blog was launched in May 2007, as it provides a glimpse into how our industry has progressed over these many years.) logistics, sourcing).

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Technology and the Growing Talent Crunch! (2025)

Procurement Insights

In an excerpt from Linda Brigg’s article, Rick Grimm (who is CEO of the National Institute of Governmental Purchasing), made the following statement; “as is true of any technology, the push for an e-procurement solution typically comes from one or more tech-savvy leaders within a school district.”

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What does a 2015 article have to do with Hershey’s 2025 acquisition of LesserEvil for $750

Procurement Insights

Paul Nilsen, Purchasing Manager Willis North America (New York, NY) My Response In Part 4 of my Changing Face of Procurement Conference Series titled Winning Strategies for Vendor Engagement, I briefly discuss an M&A case reference involving organizations within the confection or candy industry.