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Inventory Holding Costs: What They Really Include (and Why They Keep Rising)
Inventory holding costs are often treated as a simple percentage in a formula. In practice, they show up as excess inventory, tied-up cash, and constant tradeoffs between risk and availability. Most teams don’t struggle to define holding costs. They struggle to control what drives them. In many operations, inventory levels aren’t purely the result of…
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3 Way Match in Accounts Payable: How It Works, Common Errors, and How to Improve the Process
A 3 way match in accounts payable is a verification process used to confirm that a supplier invoice is accurate before payment is approved. The process compares three documents: If quantity, pricing, and terms match across all three documents, the invoice is approved for payment. If the documents do not match, the invoice is flagged…
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What Is Purchase Price Variance (PPV) in Manufacturing?
Purchase Price Variance (PPV) is the difference between the standard cost of a material and the actual price paid, multiplied by the quantity purchased. PPV = (Actual Price – Standard Price) × Quantity Purchased In manufacturing environments, PPV is more than a finance calculation. It is often a signal that supplier confirmations, pricing updates, or…
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Supply Chain Risk Management: Your Guide to Building Resilient Supply Chains
Managing your supply chain means making sure everything runs smoothly, from sourcing raw materials to delivering products on time. But there are always risks that could slow things down or cost your company money. Supply chain risk management (SCRM) helps you spot these risk events early and find solutions before they cause major issues. Today,…
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Direct Spend Procurement: Best Practices for Manufacturers
Understanding Direct Spend Procurement(and How It Differs from Indirect Spend) In many businesses, the differences between direct spending and indirect spending can be subtle. In either case, the goal is often to keep spending as low as possible to increase profit margins. However, manufacturers, distributors, and direct-to-consumer retailers recognize that these two types of spending…
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How Purchase Order Management Software Drives Efficiency and Revenue Growth
The Role of Purchase Order Management Software in Driving Revenue Growth Efficient procurement is critical for maintaining profitability and operational stability in manufacturing and distribution. However, outdated and manual purchase order (PO) processes often result in inefficiencies, human errors, and costly delays. Modern purchase order management software eliminates these challenges by automating procurement workflows, improving…