Page 363 - Aida Hovsepian Onboarding

Price Index Location, Purpose, Inputs & Outputs

Location:
L:\All\Lenexa\_New CSCS Folder Structure\Procurement\Price Index & Budget\2012 Reformat

Purpose:
The purpose of the Price Index is to provide visibility to the impact of the cost changes for key items
accounting for baseline and actual volume. It will replace the current price index report; enhancing
it to resolve current issues and gaps display information.

Inputs:
 Category Managers Responsibilities:
o Annual projected volume by item (seasonality removed) –provided annually
o For forecasts beyond the current year, the most recent projected monthly volume
will be applied until the new annual volume is loaded
o Annual projected budget by item (FOB & Freight cost components) – provided
monthly
o Reforecast by item by month – provided monthly
o Market basket items are determined annually
o % committed spend under contract by item by month – provided by CM monthly
 Data Analytics Responsibilities:
o Actual pricing for items will be input from the Price Index Report out of HAVI
Sourcing
 Price Index report will be dropped into the YY-MM reports located in the
following folder on the network. L:\All\Lenexa\_New CSCS Folder
Structure\Procurement\Price Index & Budget\2012 Reformat\Monthly
New
 For items new to the price index, the prior year comparison point will be
based on the actual pricing of that item in the system. If the item did not
have sales for the complete previous year of it being added to the Price
Index, the oldest actual price will be applied back to that January.
o Annual projected DC Mark up, fuel surcharge and Miscellaneous by month by item –
provided annually

Outputs:
 Period over Period Comparison (PoP Comp) - view to see impacts of pricing over two period
of times
o Price Index has two tabs for this comparison; one at the Category level and the other
at the individual price index item level
 % Committed - ability to see the average % committed for selected timeframes
 Time Period Drivers by Item - Allows the user to set a month as the baseline and then track
the monthly deviation over a period of time that is selected.
 Average Monthly Spend / Store – Similar to the Time Period Drivers tab, baselining an index
number off of January through the balance of the year by month
 Brand Forecast Vs Actuals - Ability to compare current month’s forecast, reforecast and
actuals to see if there are any deltas between the three
 % Change in Market Basket Chart – Chart that shows the monthly change year over year as
well as the cumulative trend line

Price Index Tool – Data Analytics Page 3