The opportunity attainable via Internal MPN Lowest Cost is the difference between the MPN Price when compared to the lowest of two-or-more prices paid to the same supplier within an enterprise. Reviewing this Savings Opportunity can help to reduce costs on identical parts, ensure that price accounting is the same across your organization, and give you confidence that your profit and loss statement is accurate and harmonized internally.
Review Internal MPN Lowest Cost Opportunities
Filter to Only Internal MPN Lowest Cost Opportunities
When in the Review Opportunities module, (1) open the controls and (2) pick the Internal MPN Lowest Cost Opportunities Type, then (3) Apply.
Examine the Opportunities Table
The Opportunities table will by default be sorted by Opportunity ($) amount; however, you may want to sort by Opportunity % to identify the largest share of cost savings.
Clicking into an opportunity of this type will present the user the difference between the MPN Price when compared to the lowest of two-or-more prices paid to the same supplier within an enterprise.
Reviewing the Details of an Internal MPN Lowest Cost Opportunity
In this example below, within the organization, there are (1) two identical MPN/supplier prices provided through distribution by different CM/ODMs, one of those two parts is delivered at a slightly lower 6% cost savings. (2) Taking the difference in cost ($1.40) multiplied by the demand (248625) creates a savings opportunity of $348,341.
You should now be comfortable reviewing Internal MPN Lowest Cost opportunities to find the difference between current MPN Price versus the lowest of multiple prices paid to the same supplier within your data. These opportunities will continue to arise whenever your organization loads new part/pricing data into the LevaData Platform, and you should be inclined to review them at least as often as that occurs.