Purchasing Price Index (PPI)

The price index trendline: a new insight into commodity prices

Grip on increasing prices

Get a better grip on the huge price increases and possible decreases that are coming at your organization. To this end, Zuiver Analytics has developed a unique and advanced data analysis in the market that generates an indexed trendline about purchasing-related products and services.

Would you like to know what the price index trendline of your main suppliers looks like, or would you like to know this for the brands you purchase, or for each product category or a specific asset or project? Then perform this unique data analysis on your own data.

After the data processing has been completed, you will receive a link to our PowerBI online environment containing the result.

You only pay a fixed amount per month for the use of the information. The data is refreshed once a month.

New and unique!

A price index is a figure that expresses the price development of a package of products and services over a certain period.

If you buy the same thing every time, it is easy to determine the course of the price. You will immediately notice whether the product has become more expensive or cheaper for you.

It gets a bit more complicated if you buy different amounts on a daily basis. Today you lose a lot more because the price has gone up and you also buy a lot more of it. The price increase feels heavier and gains more weight. To calculate the price increase correctly, it is important to calculate it on the basis of the weighted average.

However, it becomes quite a challenge for the calculation of the price index trendline if you purchase different products with different price increases and different quantities and at different times.

Zuiver Analytics has tackled this challenge and has developed an algorithm that brings the price index trendline to life based on the invoice data and the weighted moving average.

With the price index trendline about your suppliers, brands, categories, projects, etc. you have new and unique insights. This gives you more control over price fluctuations.

What can you do?

  • Compare the price index trend of suppliers and brands
  • Adjust the sales prices of products and services and better substantiate this adjustment
  • Checking the development of the price index against a market-recognized and reliable commodity or commodity index
  • Testing the substantiation of suppliers when they implement price increases on the basis of one or more supplied price indices.
  • Determining whether suppliers charge too high a price for too long if the commodity price index has been falling for a long time
  • Assess suppliers whether price increases are correctly implemented in accordance with the agreements.
  • Testing the price index trendline against the delivery reliability of your supplier to determine whether both are in line.

Training - PPI

To get the full value from the Purchasing Price Index dashboards, we offer your team the opportunity to follow this training. It focuses on the theory and calculations behind a price index and the price index trendline.

After this training you are able to interpret the price indices in the dashboard at a higher level and you are capable to create new and in-depth insights. The training consists of the following components:

  • The theory behind the price index phenomenon: different types of indices
  • Preparing the dataset: cleaning, editing and aggregating price information (incl.exercises)
  • Practical case: Hands-on calculating and interpreting a supplier's price index.

After the training - PPI, you will be able to say more about the price increases (or decreases) that suppliers charge you and what impact this has on your organization based on invoice data.

Zuiver ICT

Get in touch to receive more information on how we can bring your data to actionable insights