Item/Vendor Cost Savings

Item/Vendor Cost Savings

Dashboard Path: Purchasing -> Purchasing Cost Savings -> Item/Vendor Cost Savings

The purpose of the Item/Vendor Cost Savings dashboard is to provide the big picture of the Cost Savings or Cost Increases in current year in comparison to one of the last 2 years. The combination of filters & dynamic bar charts provides the ability to summarize the Cost Savings or Increases by Planner Code, Product Code, Family Code and Item.

This dashboard primarily differs from the "Item Cost Savings" dashboard as this differentiates purchases by Vendors. For Example: An organization procures Fasteners from 2 Vendors. Vendor A has the lead time 3 days and costs $1 per unit. Vendor A has a lead time of 20 days and costs $0.75 per unit. The "Item/Vendor Cost Savings" dashboard summarizes the Cost Savings/Increase for the Fastener between the purchases from Vendor A separately and Vendor B separately.  This would highlight cost increases/decreases by the Vendor for that Item. Whereas the "Item Cost Savings" dashboard summarizes the Cost Savings/Increase for the Fastener overall across both Vendors. This would highlight cost increases due to last minute orders that called for a shorter lead time resulting in paying more for the same item.
  1. Only Inventory Items are included for this analysis. Non Inventory items are excluded.
  2. Items that were purchased in different unit measures (U/M) in the years of comparison are excluded from this analysis.
  3. Only the items that are purchased from the same vendor across both the years in comparison are included for the analysis.
  4. On the Summary Metrics table where the "Total Cost Savings/Increase Amount" and the "Total % Cost Savings/Increase" are provided, the numbers will be displayed in Red if the Cost has increased YoY and Green if the Cost has decreased YoY.
  5. The measures summarized on the bar charts on this dashboard can be changed using the dropdown shown below,

  1. The "Dynamic Bar Charts" have the option to summarize the selected measure by different dimensions - Planner Code, Vendor, Commodity Code, Family Code, Product Code and Item as shown below,


Metrics
Description
Qty Purchased in Current Yr
Sum of quantity received in the current year across all receipts
Avg. Unit Cost in Current Yr
Weighted Average of Unit Cost in current year across all receipts
Qty Purchased in Previous Yr
Sum of quantity received in the previous year across all receipts
Avg. Unit Cost in Previous Yr
Weighted Average of Unit Cost in the previous year across all receipts
Unit Cost Reduction/Increase
Avg. Unit Cost in Current Yr - Avg. Unit Cost in Previous Yr
Cost Savings/Increase Amount
Qty Purchased in Current Yr * Unit Cost Reduction/Increase
% Cost Saving/Increase
Cost Savings/Increase Amount / (Qty Purchased in Current Yr * Avg. Unit Cost in Previous Yr) * 100


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