cost is required, and avoidance is required

  • FAQ: Cost Savings

    in purchasing can be divided into different categories. Typically the differentiation is between: Cost reduction Cost Avoidance Availability effect or working capital effects Since what is considered corporate cost savings in purchasing is a question of...

  • FAQ: Cost Avoidance

    What is Cost Avoidance? Cost avoidance is implemented, for example, through successful negotiations, without which a product or a service would be purchased at an even higher price. Cost avoidance must be posted as the success of the procurement...

  • The 6 Savings Types

    Procurement answers for a large cost block, especially in manufacturing companies or in trade enterprises. This cost block should be managed. Savings should be achieved and performance should be verifiable. In this article, we will present you with a...

  • The added value in purchasing: What all constitutes cost savings and how is this measured?

    Since the external expenditures of a corporation make up a large part of the costs, purchasing is faced with correspondingly high expectations to achieve cost savings. The financial perspective is assuming a major role and the added value in purchasing...

  • Spend Management Overview

    –product price variance Budget savings Negotiation successes Index savings Properly measure cost reduction as well as cost avoidance with SpendControl. Request demo now. 3. Keep Track of all KPIs Evaluation of prices and price variations Cost driver...

  • Procurement Performance Measurement

    Procurement Performance is a question of the definition. Every organization has a somewhat different understanding as to what should apply as a success and thus influence the added value of the purchase. Procurement Performance Measurement provides an...

  • FAQ: Potentials

    of purchase successes and cost savings in purchasing. Some of the potentials affect direct cost reductions, other cost avoidances or improved liquidity in purchasing. A further classification of potentials can be used when the market-standard logics are...

  • FAQ: Cost Reduction

    What belongs to "Cost Reduction"? Cost reductions have direct impacts on the profit and loss statement of a company. In procurement, cost reductions can be organized in various savings categories. We principally differentiate between: historical...

  • FAQ: Performance Measurement

    at least three different types of successes in regard to performance measurements in purchasing: Cost reductions Cost avoidance Availability effect or working capital effects In principle, any target value or KPI can be measured by means of key figures...

  • Services for Spend Management

  • 4 Steps: Predictive Analytics in Procurement

    Identify interdependencies, support forecasts, detect price risks early on and illustrate savings potentials with correlation and regression calculations

  • FAQ: Startseite

    Data › Competitive Effects › Compliance Indicators › Content Management › Consolidation of Procurement Data › Cost Avoidance › Cost Drivers › Cost Reduction › Cost Savings › CPO › Currency Effects › D Degree of Implementation (DOI) › DUNS numbers › E...

  • FAQ: KPIs

    processes and automation, suppliers, working capital, allocation Purchasing success and cost savings (cost reduction & cost avoidance) MPV, spend flow accounts, measures, internal benchmarking, currency effects (gains/losses), market effects or cost...

  • How to Introduce Successful Initiative Management in Procurement (Part 2)

    In many companies, initiative management and controlling still only play a minor role. Orpheus set out to understand the reasons and “stumbling blocks” and has illustrated essential “design criteria” in this article that play a large role in the...

  • Indirect Purchasing: Transparency, potential analysis and performance measurement

    In many companies, the purchase of so-called direct materials that are incorporated into the final products is part of the core business. These purchases make up approx. 70% to 85% of the purchasing volume within the manufacturing industry. All other...

  • FAQ: Added Value of Procurement

    permitted as “added value”, e.g. compliance topics process efficiencies automation success of negotiations or other key Cost Avoidance indicators Dashboards & Insights Calculate the added value of procurement - With Dashboards & Insights you can perform...

  • FAQ: Savings Management

    management does not focus solely on procurement volumes, including pricing and quantities, but savings in the sense of Cost Avoidance and Cost Reduction as well. Dashboards & Insights Dashboards & Insights is a complete Procurement Controlling and Spend...

  • FAQ: Material price variance (MPV / MCV)

    How can I measure material cost variance (MKV) or material price variance (MPV)? Material cost variance (MCV) or material price variance (MPV) is an essential key procurement savings indicator. It identifies the change of material costs or material...

  • FAQ: Key Procurement Performance Indicators

    indicators cover all areas of analysis relevant to procurement management. Examples are savings(Cost Reduction and Cost Avoidance) procurement volume pricing quantities Maverick Buying and other compliance-related topics automation procurement processes...

  • FAQ: Budget Savings

    for Impact & Savings Tracking more about Impact & Savings Tracking Purchasing Procurement Budget Savings Cost Reduction Cost Avoidance Savings Spend Search Glossary {loadposition sidebar06} Orpheus Glossary {loadposition sidebar07} Orpheus Blog Read...

  • Project Management in Procurement beyond Excel

    Saving initiatives have been introduced and their success measured for many years. Now, a certain professionalization is being introduced...

  • Akademie übersicht EN

    sidebar14} Expert Knowledge: Alphabetical glossary Cash-out-Rate › Compliance Indicators › Content Management › CPO › Cost Avoidance › Cost Reductions › eClass › Procurement Controlling › Procurement Success › Key Procurement Performance Indicators ›...

  • Orpheus Videos InitiativeTracker Overview

    in the standard: Cost reduction: These are EBIT-relevant savings that are measured against a historical or budget price Cost Avoidance: We understand either the prevention of price increases or the savings that you realize against a new, manual baseline...

  • FAQ: Initiative Management

    Tracking more about Impact & Savings Tracking Purchasing Procurement Initiative Management Initiatives Cost Reduction Cost Avoidance Savings Search Glossary {loadposition sidebar06} Orpheus Glossary {loadposition sidebar07} Orpheus Blog Read blog...

  • FAQ: Procurement Success

    from an economic standpoint. However, in a narrower sense procurement success means cost reductions as well as cost avoidance. Impact & Savings Tracking Impact & Savings Tracking is a full featured suite for planning, steering, controlling and...

  • FAQ: Procurement Planning

    more about Impact & Savings Tracking Purchasing Procurement Initiatives Measurement Savings Budget Cost Reduction Cost Avoidance Search Glossary {loadposition sidebar06} Orpheus Glossary {loadposition sidebar07} Orpheus Blog Read blog articles about...

  • FAQ: Cash-out-Quote

    Oracle etc.). Request a Demo for Dashboards & Insights more about Dashboards & Insights Purchasing Procurement Cost Avoidance Cost Reduction Savings Spend Search Glossary {loadposition sidebar06} Orpheus Glossary {loadposition sidebar07} Orpheus Blog...

  • FAQ: Budget

    Request a Demo for Dashboards & Insights more about Dashboards & Insights Purchasing Procurement Budget Cost Reduction Cost Avoidance Savings Spend Search Glossary {loadposition sidebar06} Orpheus Glossary {loadposition sidebar07} Orpheus Blog Read blog...

  • Calculating and Analyzing Material Price Variance (MPV) - 6 Basic Rules

    Material price variance – sometimes also referred to as material cost variance (MCV) – is an essential key indicator for spend managers. It is important because it is a central measure for the success of procurement relevant to profit and loss. It sets...


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