What is purchasing volume revenue ratio in SAP (SRD-SRM - SRM-Supplier Relationship Management)?

SAP Term: purchasing volume revenue ratio

• Component: SRD-SRM

• Component Name: SRM-Supplier Relationship Management

• Description: Purchasing volume based on invoice value, compared to the revenue of the entire enterprise.

Smart SAP Assistant

• Key Concepts: 
  Purchasing Volume Revenue Ratio (PVRR) is a metric used in SAP Supplier Relationship Management (SRM) to measure the total amount of purchasing volume relative to the total revenue generated from that purchasing volume. It is calculated by dividing the total purchasing volume by the total revenue generated from that purchasing volume. 
  
  How to use it: 
  The PVRR metric can be used to measure the efficiency of a company’s purchasing process. It can be used to identify areas where improvements can be made in order to increase efficiency and reduce costs. It can also be used to compare different suppliers and determine which one is providing the best value for money. 
  
  Tips & Tricks: 
  When calculating the PVRR, it is important to take into account any discounts or other incentives that may have been offered by suppliers. This will ensure that the PVRR is an accurate reflection of the actual value of the purchases made. Additionally, it is important to consider any additional costs associated with the purchases, such as shipping and handling fees, in order to get an accurate picture of the total cost of the purchases. 
  
  Related Information: 
  The PVRR metric is closely related to other metrics such as Return on Investment (ROI) and Cost per Unit (CPU). These metrics can be used in conjunction with PVRR to gain a better understanding of a company’s purchasing process and identify areas for improvement. Additionally, PVRR can be used in conjunction with other metrics such as customer satisfaction and supplier performance in order to gain a more comprehensive view of a company’s purchasing process.