Onsite Seminar

Cost & Price Strategies

Reducing and Controlling Cost with Cost-Containment Strategies

Contribute to your organization's competitive edge by learning creative paths that reduce or eliminate costs. Gain a deeper understanding of cost concepts, cost issues and cost drivers while applying analytical tools that get results.

Who Should Attend

Purchasing and supply management professionals as well as other sourcing team members, including cost analysts, engineers, and quality professionals, striving to enhance their organizations' competitiveness. Team attendance is encouraged.

You Will Learn
  • Taking cost/price analysis further for long-term cost-competitiveness
  • Analytical tools to understand cost drivers
  • Techniques for multi-firm process mapping
  • Activity-based costing between organizations
  • Approaches to compressing time, and therefore costs
  • Creating ways for containing costs
  • Setting cost-containment goals with suppliers
Course Outline
  1. Understanding cost concepts; Traditional cost concepts; Life cycle cost; Total cost of ownership; Activity-based cost; Target cost; Cost of quality
  2. Understanding cost issues; Cost relationships; Cost accounting principles; Time value of money; Holding cost; Transaction cost
  3. Applying analytical tools; Traditional cost and price analysis; Activity-based costing; Break-even analysis; Value analysis; Inventory analysis
  4. Identifying cost drivers; Systems and strategies; How cost strategies fit into the corporate strategy; Structure and processes; Policies and procedures; Contract administration; Terms and conditions; Design and specifications; Activity- based costing between organizations
  5. Process mapping to uncover drivers and remove time; Mapping across organizations; Benchmarking; Value chain management; Cycle time reduction
  6. Creative paths to reducing or removing cost: Outsourcing; Networking; Long-term contracts
  7. Applying concepts to supplier relationships; Strategic cost containment; Activity-based management; Efficiency teams; Quality improvement; Process reengineering; Supplier certification; Early involvement; Cost management goal setting