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Component Sense Blog

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    Vivian Trịnh

    Purchase Price Variance: How Redistributing Excess Offsets Unfavourable Variances

    DRAM contract prices jumped 90 to 95% quarter over quarter in the first quarter of 2026, and NAND Flash rose 55 to 60% over the same period, according to TrendForce. Component lead times have followed a similar path. Top-tier semiconductor lead times hit 40 weeks in March 2026, a 67% jump in a single month, and 72% of organisations now say the annual cost of reactive procurement decisions tops $50,000. Procurement teams tracking purchase price variances (PPVs) are absorbing many unfavourable variances in a single budget line this year.

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