Category: Procurement

  • How Price Affects Gross Margin

    How does Price affect Gross Profit/ Gross Margin? The first step is to understand how a Gross Profit is calculated. Example You sell a painting for £100 and you paid £60to produce it, the “cost of goods” is 60%. Gross Margin is 40%. Your gross profit is £40. Calculation (selling price)- (cost of goods)/ (selling…

  • Break even Analysis Template

    Break even Analysis Template

    Excel version of the PDF break even analysis is available at the bottom of the page. Who coined the term break even? I don’t know and attempts to find out wasn’t very fruitful on a google search. The closest I got ……. break-even (adj.) also breakeven; in reference to a balancing of cost and income, usually with point,…

  • SWOT Analysis

    Simple SWOT Analysis for Procurement Professionals Who first coined the term SWOT? SWOT Analysis (short for strengths, weaknesses, opportunities, threats) is a business strategy tool to assess how an organization compares to its competition. The strategy is historically credited to Albert Humphrey in the 1960s, but this attribution remains debatable. There is no universally-accepted creator. External…

  • What Is Commissioning & How Is It Different to Procurement?

    A brief introduction to Commissioning and Procurement Commissioning is buying services for the public rather than an organisation, it is a defined approach to planning and resourcing public services. Cabinet Office 2011 describes it as The cycle of assessing the needs of the people in an area, designing and then achieving appropriate outcomes. The service…