Fans of this column know that I'm not really a huge fan of savings reports in general for many reasons. See Why Savings Reports Are (Somewhat) Bogus for details.
Here's a good example. Try creating, justifying, and tracking a savings report with any commodity directly or indirectly related to gas prices in this current atmosphere. A contract based on what looked like a sure savings win when gas was about $2 per gallon could be huge loss with gas the current outrageous price of $3 per gallon.
Take a look at Purchasing's Commodity Price Index. Forget gasoline itself for justa moment (if you can)! What are some of the other items that are affected by the price of a barrel of oil? Which of these is: House Paint, Piano Keys, or Toothpaste? Take the quick quiz titled Lipstick At $75 A Barrel on the Time Magazine website to learn the answer.
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