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Essay text:
The analysis of purchase value is based on unit value, annual volume and annual value.
Class % of total items purchased % of total purchase dollars
A 10 70-80
B 10-20 10-15
C 70-80 10-20
Typically the smaller, less important item creates the most amount of work and nuisance out of proportion to their dollar value and importance. By classifying items that have the best potential for savings, purchasing can discover where to spend the time and add the most value.
It is common to identify C items, and deal with those items by carrying inventories, creating blanket agreements or other strategies that reduce administrative and repetitive work...
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Common topics in this essay:
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