LevaData Glossary of Terms Follow

Across the LevaData Platform you will often encounter specialized terms while navigating the user interface and reading supporting documentation. Some you may be familiar with from past experience, others may be new to you. Whenever possible, these terms are spelled out contextually, but sometimes they are abbreviated or the underlying process and/or calculations are not displayed due to navigation space constraints. Please use this reference to help understand all such terms across the LevaData Platform.

See also LevaData Acronyms for additional reference.

• Achieved Savings:
  • Savings that was realized after inventory adjustments and product implementations.
  • It equals the CPN Savings based on the "time" scope filter applied.
• Ad Hoc Parts:
  • If the CPN, CM/ODM, and/or RFQ recipient are not part of Spend Intelligence (Cost Optimizer) we can create a new relationship with a new RFQ recipient using ad hoc parts in an ad hoc RFQ.
• Aggregated MPN Risk:
  • Indicates the total risk for the currently qualified MPNs and effectively reflects the health/risk of the aggregated MPN pool associated with the CPN.
  • Aggregates individual MPN EOL, Lead Time, and Manufacturer risks.
  • Example: if there are two MPNs associated with a CPN/Manufacturer and one MPN is near EOL, while the second (replacement) MPN has extended life (long EOL), the "Aggregated MPN" risk conferred from EOL will remain low.
• All Opportunity %:
  • Total Opportunity as a percentage of MPN Spend.

    $$\frac{\text{Opportunity Amount}}{\text{MPN Savings} + \text{MPN Spend}}$$

• Alternate Part Match:
  • If any MPN shares FFF spec matching with another MPN, then the prices can be compared to discover cost savings.
  • Alternate Part Match Opportunities are calculated as follows:

    $$(\text{MPN Cost} - \text{Part Match Cost}) * \text{Demand} * \text{Split}$$

  • See: Opportunity Type: Alternate Part for more information.
• Availability YTEOL:
  • The explicitly enumerated years to end of life for a part.
• Average Commodity Savings:
  • Average Commodity Savings uses the average sub commodity cost trend from last 4 quarters within a customer, which is compared with MPN level cost trends to determine room for savings.

    $$\text{MPN Cost} * (1 - (\text{Average Sub Commodity Savings %} - \text{MPN Savings %})) * \text{MPN Demand}$$

• Awarded Spend and Savings (RFQ):
  • Please see: How are the summary values calculated when viewing RFX Details? (Awarded)
• Baseline CPN Cost:
  • Customers can configure the Baseline CPN Cost to be from any quarter based on priority.
  • Savings calculation is based on a reference quarter cost (usually the last quarter of the previous year).
  • The formula to calculate Savings is:

    $$(\text{CPN Baseline Cost} - \text{CPN Current Quarter Cost}) * \text{Current Quarter Demand}$$

  • Steps to calculate Baseline CPN Cost:
    1. If there is a Standard Cost defined for a part, it will be considered as the default baseline cost.
    2. If there is no Standard Cost defined, but there is a Predecessor Part defined for a CPN, then the Standard Cost of that Predecessor Part would be considered as the default baseline cost.
    3. If no Standard Cost exists for the Predecessor Part, the reference quarter cost of Predecessor Part would be considered as the default baseline cost.
    4. If there is no Standard Part or Predecessor Part associated with a CPN, then the reference quarter is set to “Last Quarter of Last Fiscal year” or “Third Quarter of Last Fiscal Year”
    5. If none of the above, Savings = 0
  • Now, the user would be able to configure Step 4 to mention priorities of Baseline CPN Cost
  • For example: for CPN A, the priority may be set as

• • Note:
    1. -1 in priority Year denotes last Fiscal Year
    2. 4 in Priority Quarter denotes Q4
  • Users would be able to enter this through the Customer Success team (through the Customer Configuration) at the time of onboarding.
• Baseline Spend:
  • Spend based on the baseline costs.

    $$\frac{\text{Baseline Cost} * \text{Forecast} * \text{Split}}{100}$$

• Benchmark:
  • For any given MPN with coverage (coverage means that the customer is participating within the community), the Benchmark Cost is the next best cost percentile when your MPN cost is compared to the distribution of MPN costs within our community database.
    • This is specifically available for standard parts (not custom parts) in the LevaData community.
    • Benchmark Cost is an anchor price for a negotiation but is not guaranteed. 
• Benchmark Opportunity:
  • Equal to:

    $$(\text{MPN} - \text{Benchmark Cost}) * \text{Demand} * \text{Split}$$

  • See: Opportunity Type: Benchmark for more information.
• Best in Class:
  • A part that whose MPN cost is at or below the Benchmark Cost. (90th percentile)
• BOM:
  • The Bill of Materials that comprise a given product 
• Cancellation Term:
  • The final date that the RFQ can be cancelled by without penalty.
• CM/ODM:
  • Contract Manufacturer/Original Design Manufacturer.
  • Responsible for the sourcing (and sometimes negotiation) of parts (and part costs), when requested, and the assembly and transformation of products.
• CM/ODM Lowest Cost Opportunity:
  • The CM/ODM Lowest Cost is the lowest MPN cost across your CM/ODMs.
  • The CM/ODM Lowest Cost Opportunity is calculated as:

    $$(\text{MPN Cost} - \text{CMODM Lowest Cost}) * \text{Demand} * \text{Split}$$

  • See: Opportunity Type: CM/ODM Lowest Cost for more information.
• CPN:
  • Customer Part Number
• CPN Cost:
  • The weighted average of the MPN costs that comprise the CPN using split data.
  • CPN Cost is calculated as:

    $$\sum\frac{\text{MPN Cost} * \text{CPN Actual Demand} * \text{Split %}}{100} \div \sum\frac{\text{CPN Actual Demand} * \text{Split}}{100}$$

• CPN Lowest Cost:
  • The lowest CPN cost for that part across multiple sources (if applicable) for the MPNs that comprise it.
• CPN Savings $:
  • CPN Savings are based on baseline CPN cost versus quote period CPN cost.

    $$\sum\left((\text{Baseline CPN Cost} - \text{CPN Cost}) * \text{CPN Demand}\right)$$

  • CPN Cost is weighted average cost of the parts across all CM/ODMs that are present in an RFQ.
• CPN Savings %:
  • Calculated as:

    $$\frac{\text{CPN Savings Amount}}{\text{CPN Spend Amount} + \text{CPN Savings Amount}}$$

• CPN Spend $:
  • Calculated as:

    $$\sum\left(\text{MPN Spend Grouped by CPN and Time Period}\right)$$

• Demand:
  • The part quantities required to meet forecasted production.
  • CPN Demand is calculated as:

    $$\text{Product Demand} * \text{CPN Usage}$$

  • MPN/Supplier/Distributor Demand is calculated as:

    $$\text{CPN Demand} * \text{Split}$$

• Direct Component Spend:
  • Sum of MPN Spend for the Next 4 Quarters.
• eBenchmark:
  • Discount analysis using MPN + FFF with same spec matches and then applying the average % Discount to the Lowest Distributor price of each MPN.
  • See: Opportunity Type: eBenchmark for more information on all eBenchmark opportunities.
• eBenchmark @Lowest Distributor:
  • Lowest distributor price is the price target when a customer's price is found to be higher than the lowest distributor price.
  • This opportunity represents immediate savings or additional sources of supply.
  • The average discounts within these next two eBenchmark groups provide context and perspective of where a customer's % eBenchmark performance resides in comparison to the LevaData community. Any variance worse than the average is presented as a target price and associated savings.
• eBenchmark @MPN+FFF Average:
  • The price target when comparing customer's MPN price against the average discounted price that the community achieves compared to distribution pricing for the same MPN, or for a cluster of form/fit/function (FFF) MPNs.
  • For example, the community may receive an average 55% discount from distribution price - if a customer's MPN price is showing a 25% discount, then LevaData will highlight the 30% difference as an opportunity.  
• Equal Splits Preference:
  • A method of part allocation which distributes each part equally among the Suppliers that provide them.
• Estimate YTEOL:
  • Years to End of Life estimated based on market intelligence (related to MPN standard parts).
• External MPN/CPN:
  • A part that is not in the customer's database.
• Filtered Spend:
  • This is the spend on the current part (MPN, CPN, Product, Commodity) for the current quarter plus the next three quarters.
  • It is calculated as:

    $$\text{Forecast} * \text{Part Cost}$$

• Forecast:
  • An estimate of future production.
• Forecast Drivers:
  • Forecast Drivers show the split of forecast among different commodities, sub-commodities etc. (in %) based on the View selected (in descending order).
  • The data can be filtered using multiple dimensions such as Manufacturer, Supplier, CM/ODM, CPN, MPN, etc.
• Forecast Vs. Actual:
  • Shows the planned versus actual forecast and how it impacts the Spend / Savings performance
• Global Level
  • Used for CPN Costs in Spend and Savings areas of the Platform.
  • Each part level is the same across all CM/ODMs.
  • Global Level is contrasted with Site Level.
• Global Price Flag (Yes/No option):
  • Yes: Cost and Splits are same within the quarter at CPN + CM/ODM + MPN + Manufacturer + Supplier.
  • No: Cost and Splits are not the same within the quarter at CPN + CM/ODM + MPN + Manufacturer + Supplier
• Impact % Due to RM Change:
  • The percentage impact that a change in Raw Material cost has on MPN Price.
• Incoterms:
  • Commercial terms defined by the International Chamber of Commerce that relate to transportation and delivery of goods.
  • They are a set of 11 internationally recognized rules which define the responsibilities of sellers and buyers.
  • Incoterms specifies who is responsible for paying for and managing the shipment, insurance, documentation, customs clearance, and other logistical activities.
• Incumbent Preference:
  • Allocation method which distributes each part to the historically/previously awarded vendor.
• Internal MPN Lowest Cost:
  • Lowest Cost of selected MPN within your customer data set
  • (i.e. irrespective of CPN or CM/ODM within the quarter)
  • For more information, see: Opportunity Type: Internal MPN Lowest Cost
• KPI Savings Target:
  • Key Performance Indicator.
  • A measure of savings that is of strategic importance to sourcing professionals.
• Lead Time / Weeks:
  • Number of weeks it takes to fulfill an order from the date of purchase order. 
• Life Cycle:
  • A series of stages that a part or product goes through in its life.  
• Lowest/Highest Performing:
  • The sub commodities that perform the best/worst relative to selected community data when compared with the same business or vertical.
• Lowest Cost Source:
  • The vendor who offers the lowest MPN cost for that part.
• Lowest CM/ODM Cost:
  • Lowest CM/ODM cost is the lowest cost among all CMs/ODMs on the same CPN within the quarter.
• Managed BOM Cost:
  • Portion of the BOM managed by the purchasing party.
  • It equals the sum of all extended costs for all Buy Parts.
  • The extended cost is equal to:

    $$\text{CPN Cost} * \text{Usage}$$

• Managed Percentage:
  • The percentage of Total Product Cost that is Managed Cost.
• Manufacturer:
  • An entity who makes the part
• Mapped Raw Material:
  • The mapping of Raw Materials used to make a part
• Master Cost Table:
  • Master Cost Table shows the CPNs, in the Customer Data, detailing the MPN splits for each CM/ODM
• MOQ:
  • The minimum order quantity for a single purchase order from your vendor.
• MPN:
  • Manufacturer Part Number
• MPN Cost:
  • The Cost a buyer is charged for a part.
• MPN Savings:
  • MPN Savings are based on baseline MPN cost versus quote period MPN cost.
  • When either Baseline MPN Cost or MPN Cost are zero then MPN Savings is equal to zero.
  • If neither of those values are zero, then MPN Savings is calculated as follows:

    $$\frac{\left(\text{Baseline MPN Cost} - \text{MPN Cost} \right) * \text{CPN CM Forecast} * \text{Split}}{100}$$

• MPN Spend:
  • MPN Spend is always calculated per individual quarter on this basis:

    $$\text{MPN Cost} * \text{CPN Demand} * \text{Split}$$

• Multi-Source:
  • A part for which the Customer engages with multiple Suppliers.
• Multi-Source Opportunity:
  • Opportunity that arises from having multiple Suppliers who source a part.
  • Multi Source Opportunity is calculated on this basis:

    $$(\text{MPN Cost} - \text{Multi Source Lowest Cost}) * \text{Demand} * \text{Split %}$$

  • See: Opportunity Type: Multi Source for more information.
• Optimal Spend and Savings (RFQ):
  • Each part is allocated completely to the supplier who offers the lowest MPN cost.
  • Please see: How are the summary values calculated when viewing RFX Details? (Optimal)
• Part Match Cost:
  • A Benchmark price for all alternative parts with the same form, fit, and function.
  • Only MPNs that meet these criteria and are in the same cost percentile has your MPN cost are considered.
  • The part match cost is then calculated as the next best cost percentile.  
• Predecessor CPN:
  • In the sourcing process, a part's CPN is changed despite, functionally, being the same part.
  • The "predecessor CPN" records the change so that savings can be accounted for.
  • This is at the CPN level savings to use predecessor CPN from the reference quarter to compare price change from baseline cost.
• Previous Savings (%):
  • Savings % that is achieved in the Current Quarter.
  • This will help users to compare with previous quarter savings.
  • Previous Savings percent is calculated as:

    $$\frac{\text{Baseline CPN Cost} - \text{Current Quarter CPN Cost}}{\text{Baseline CPN Cost}}$$

• Product Allocations:
  • Product Allocations shows what percentage of Total Product Cost is Managed BOM Cost for a selected period of Time.
• Product Spend:
  • Product spend is the total amount of money spent by a company on the production of a product.
  • In LevaData Platform, this is calculated as:

    $$\text{Product Cost} * \text{Product Demand}$$

• Product Savings:
  • LevaData Platform estimates product savings as a difference of the baseline product cost (production cost under normal circumstances) and product cost (production cost with cost-saving measures) projected across the total product demand.
  • Product Savings is calculated as:

    $$(\text{Baseline Product Cost} - \text{Product Cost}) * \text{Product Demand}$$

• Projected Spend and Savings (Non-Awarded RFQ):
  • Spend based on the non-awarded MPN cost of how much there is to award at the RFQ level.
  • Please see: How are the summary values calculated when viewing RFX Details? (Projected Calculations: Not Yet Awarded)
• Projected Spend and Savings (Partially Awarded RFQ):
  • Spend based on the non-awarded MPN cost of remaining award amount at the RFQ level.
  • Please see: How are the summary values calculated when viewing RFX Details? (Projected Calculations: Partially Awarded)
• Quoted Spend (RFQ):
  • Spend amount in dollars based on the cost quoted by the vendor.
  • For the Sent/Viewed status, this will be zero, because the vendor has not provided a quote.
  • Quoted Spend for RFQs is calculated as:

    $$\frac{\text{MPN Cost} * \text{Forecast} * \text{Split}}{100}$$

• Quoted Savings (RFQ)
  • Savings amount in dollars and percentage based on the vendor-responded costs.
  • For the Sent/Viewed status, this will be zero, because the vendor has not provided a quote.
  • Quoted Savings for RFQs is calculated as:

    $$\frac{(\text{Baseline CPN Cost} - \text{Supplier Quoted MPN Cost}) * \text{Forecast} * \text{Split}}{100}$$

• Raw Material Trends:
  • Shows the price trends (historic as well as future) of Raw Materials
• Raw Material Percent Change (RM %):
  • RM % is the percentage change in raw material cost from one period to the next.
• RM % Impact on Part:
  • The impact percentage that a change in raw material cost have on part cost.
• Related Products:
  • Top 5 Products associated with the vendor.
• Related Product Families:
  • Product families associated with the vendor.
• RFQ Spend and Savings:
  • Savings that are available which can be achieved on the spend based on Quoted, Awarded, and Unquoted parts.
  • Please see: How are the summary values calculated when viewing RFX Details? (RFQ)
• Revenue Impact / Product Sales Impact:
  • This is the Product Revenue that would at risk if the part were to become unavailable.
  • It is calculated by finding all the products where the part/commodity is used.
  • Then, if that part became unavailable, the impact is:

    $$\text{Average Product Selling Price} * \text{Product Forecast}$$

  • Where the product forecast is for the current quarter plus the next three quarters after that
• STD/NCNR (RFQ):
  • Standard (STD) and Non-Cancellable and Non-Returnable (NCNR).
  • Standard parts are produced in mass and are easily distributable to customers.
  • NCNR parts are often highly customized which typically prevents resale to other buyers.
• Savings $:
  • Savings dollar amount presented in the platform, calculated as:

    $$(\text{Baseline Cost} - \text{Current Cost}) * \text{Demand}$$

  • Note: Your organization's baseline is unique, depending on data your organization has provided to LevaData.
• Savings %:
  • Savings as a percentage of Spend, calculated as:

    $$\frac{\text{Savings Amount}}{\text{Savings Amount} + \text{Spend Amount}}$$

  • Note: Totals are likely not to include rebates or Purchase Price Variance.
• Savings Percentile:
  • For a customer, their Savings Percentile is a measure of how their savings, as a percentage of spend, compares to the rest of the community.
• Savings to Date:
  • Savings until the current quarter with the selected vendor.
• Savings Received:
  • Savings based on the vendor responded cost, calculated as:

    $$(\text{Baseline CPN Cost} - \text{Vendor MPN Cost}) * \text{Total Forecast}$$

• Share of Total Available Market:
  • The percentage of a given vendor's Total Available Market with you that they have business for.

    $$\frac{\text{Vendor Spend}}{\text{Total Available Market}} * 100$$

• Share/Split/Allocation %:
  • The percentage of quantity allotted to specific vendor.
• Single Source:
  • A part for which the customer engages with only one vendor.
• Site Level
  • Used for CM-CPN Costs in Spend and Savings areas of the Platform.
  • Each part level is calculated at each CM's site.
  • Site Level is contrasted with Global Level.
• Sourcing Strategy Risk:
  • A function of the number of (manufacturer) sources for a given CPN, the Inventory Strategy, and the time-to-requalify a new/replacement part.
  • Individual "raw" CPN risk factors include: # Sources for CPN, Time to Requalify, Strategic Inventory (VMI), Part Spend, and Sales Impact relating to a Part.
• Spend %:
  • The percentage share of a single item compared to the total spend on all items.

    $$\frac{\text{Individual Item Spend} * 100}{\text{All Items Spend}}$$

• Spend Drivers:
  • Spend Drivers show the split of spent among different commodities, sub-commodities etc. (in %) based on the View selected (in descending order).
  • The data can be filtered using multiple dimensions such as: Manufacturer, Supplier, CMODM, CPN, MPN, etc.
• Savings Drivers:
  • Savings Drivers show the split of savings among different commodities, sub-commodities etc. (in %) based on the View selected (in descending order).
  • The data can be filtered using multiple dimensions such as Manufacturer, Supplier, CMODM, CPN, MPN, etc.
• Standard Cost:
  • Provided by your organization's finance team on a regular cadence for each MPN.
  • Configured by LevaData in the backend of our platform to be a reference part cost.
  • The Standard Cost value (per part) is then used as a reference point for other calculations.
  • See Baseline CPN Cost above for more information on how Standard Cost can be used.
• Sub Commodity:
  • Defined by a specific function and/or form.
  • A subset category of a Commodity.
• Supplier/Distributor:
  • The distributing intermediary between the source manufacturer and the purchasing customer.
• Target Cost ($) (Review Opportunities):
  • Each opportunity type provides a target cost which is the price that LevaData calculates which represents the optimal negotiation price for an MPN.
  • This is the "anchor" price in your negotiation which is used to drive realized opportunity savings.
  • For more information on each opportunity type, please see: Opportunity Types: Introduction
• Target Spend and Savings (RFQ):
  • Target that is set during the creation of RFQ.
  • Please see: How are the summary values calculated when viewing RFX Details? (Target)
• Total Available Market:
  • Spend of all sub commodities associated with the Selected Supplier.
  • The theoretical maximum spend the Supplier could have with you if they won all the business for every sub-commodity that they currently engage in with you.
• Total Product Cost:
  • Combines the following:
    • Baseline Bill of Materials (BOM) Cost for the product
    • Transformation Costs (e.g. Labor and Overhead)
    • Additional Costs (e.g. items added by the user unique to their organization)
  • Calculated as:

    $$\text{BOM Cost} + \text{Transformation Costs} + \text{Additional Costs}$$

• Transformation Cost:
  • The cost associated with the assembly, testing, re-engineering, and improvement of the product.
  • See: How can I import and analyze transformation costs for my bill of materials?
• Transformation Spend:
  • LevaData Platform models transformation spend with the following calculation:

    $$\text{Transformation Cost} * \text{Product Demand}$$

  • Our model assumes transformation initiatives are directly proportional to product demand.
  • We do not model return on investment or unique organizational complexities.
• Two Supplier Preference (RFQ):
  • Allocates parts to the two Suppliers with the lowest cost and lowest cost variance.
  • Variance: Based on lowest cost and cost variance between supplier's share will be allocated to 2 lowest cost suppliers: