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Absolutely! A steady acquisition cost difference, whether favorable or not, can provide a clue to the quality of suppliers. Constant favorable PPVs may be a sign of positive negotiation or discount with the suppliers However, rising or non-steady PPVs could be signs of unstable prices, or fails to communicate effectively or have a secretive nature about prices by the suppliers. Trend analysis of PPV can give a procurement team the option of rating vendors on their consistency, resuming negotiations, or seeking alternative vendors. It is not just a cost-wise measure but also a performance measure that can help you to ascertain that you are receiving the most value out of your supply chain partners.
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