Introduction
This course leads delegates through the development and implementation of carefully crafted strategies for the acquisition of all goods, parts, equipment, and services. This is a critical issue for all organizations wishing to reduce operating cost while improving quality and productivity.
This program explores key concepts of Strategic Cost/Price Analysis, Value Analysis, and Total Cost of Ownership that will move today’s supply management organization to the strategic focus needed to achieve world-class performance. Organisations sticking to out-dated procedural and tactical approaches will be outcompeted by leading organisations utilising the latest approaches and techniques to ensure that their supplier base matches their ambitions.
This course will feature:
- Setting strategies for world class procurement
- Maximising value for money
- Options for International supply chain sourcing
- Improving profitability by controlling total costs
- Understanding and managing supplier pricing models
Objectives
- Analyse the elements of cost In supplier’s price
- Understand differences in international labor rates
- Evaluate supplier’s different pricing models & analyse supplier’s price breakdowns
- Understand methods of price and cost analysis
- Create an approach to implementing TCO analysis
Content
Day One
Setting the Strategic Direction
- Defining the supply management mission and vision
- Stages to world class Supply Management
- Becoming more strategic in procurement
- Supply Management skill sets
- Developing the Spend analysis
- The ABC (Pareto) analysis
Day Two
How do you know that you got a Good Price?
- Supplier Pricing models
- Defining Cost and Price analysis
- Methods of Price analysis
- Working with Producer Price Indexes
- Developing the Organization’s purchase price index
- Estimating Cost in relationships
Day Three
Getting a Better Price by Analysing Cost
- Methods of Cost analysis
- Major elements of Cost
- What and how important are Supplier overheads
- Sources of cost information
- Analysing Supplier cost breakdowns
Day Four
Using Price, Volume, International Labour, and Value Analysis
- Global Industrial Labour Rates
- Working with Currency Exchange Rates
- Cost Volume Profit Analysis
- Fixed and Variable Costs Defined
- Defining Value Analysis?
- Checking Supplier Value
Day Five
Total Cost of Ownership (TCO)
- Changing Supply Management
- Defining TCO
- Barriers to TCO
- Approaches to TCO
- Total Cost Modelling of the Supply Chain
- Implementing TCO
