How to set up a price index in ProcureAnalytiq

Here is a detailed explanation of how to set up the benchmark price index

Step 1 Set up the baseline index

This is essentially a list of pricing or an index representing the price development of a product or category. It will form the baseline for your index.

Here follows a description in a number of steps

Step 2 Set up the benchmark price index

This is essentially the process of setting up a benchmark index, either of direct market price index, or an indirect price index based on other feedstocks or cost drivers.

Here follows a description in a number of steps

Step 3 Analyze and fine-tune the outcome

Once your first index has been set up, you will need to fine-tune the outcome. The key focus is on the statistical correlation of the cost-drivers with the baseline price index. The change syou could make are:

  • To change the cost-drivers
  • To change the value % of the cost-drivers
  • To change the forward number of months
  • To change the averaging function
  • To change the index date (this does not change the statistical correlation)

Procure Analytiq


ProcureAnalytiq is an online cloud-based software tool to track market developments and leading indicators related the direct material purchases for your business. 

ProcureAnalytiq enables user to faster reaction to market changes, better negotiations, automated forecasting of material pricing, better internal and external communication, and ultimately reduces direct Raw Material prices.

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