Remove Management Remove Purchasing goals Remove Strategic sourcing
article thumbnail

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

SCMDOJO

This is where Purchase Price Variance (PPV) plays a crucial role and as per Emiliani, (2010), helps strategy makers evaluate spending and create well-structured cost-saving strategies. 1) Controlling Costs Purchase Price Variance (PPV) helps track spending and ensures that estimated costs align with planned costs.

Price 56