Why Chose this Training Course?

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 course 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 out competed 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

What are the Goals?

By the end of this course delegates will be able to:

• 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

Who is this Training Course for?

This course is suitable to a wide range of professionals, but will greatly benefit:

• Purchasing, Procurement, Contracts, Contract Administration, Projects personnel
• All others who are involved in the planning, evaluation, preparation and management of purchasing and contracts that cover the acquisition of materials, parts, equipment, and services, and who are in organizations whose leadership want high levels of excellence in those involved in these activities.

How will this Training Course be Presented?

This course will utilise a variety of proven adult learning techniques to ensure maximum understanding, comprehension and retention of the information presented.

The course is highly interactive and will prompt delegates to reflect on their current practices and goals.  The tutor will guide and facilitate learning using a wide range of methods including direct input, discussions, case studies and exercises in groups and pairs.

The Course 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