--- To enhance the value and performance of procurement and SCM practitioners and their organizations worldwide ---

Onsite Seminar

Cost & Price Strategies

Supplier Cost Management: Applied Best Practices That Ensure Minimum Total Cost

Course Outline

Orientation and introductions

Cost and price analysis
  • Looking at the supplier: the financial review
  • Common analytical tools
  • Ratio analysis
  • Options for cost reduction
  • The concept of "value"
  • Pricing information: how to get it, what to do with it
  • Case analysis and applications

Purchase of capital assets
  • Budget considerations
  • Cost characteristics
  • Decision-making process
  • Service agreements
  • Buy vs. lease
  • Buying used equipment
  • When, where and how to buy
Purchase of services
  • Characteristics of service vs. material purchases
  • Importance of a Statement of Work (S.O.W.)
  • Defining requirements
  • Defining quality, delivery and price terms
  • Supplier Quality System and Assurance Analysis (certification, ISO 9000, CPK analysis, etc.)
Outsourcing and make vs. buy
  • Basis for an outsourcing agreement
  • Characteristics of a successful program
  • Disadvantages of outsourcing
  • Balancing cost and value
  • The systematic steps of value analysis

Analysis of the supply management system: how to ensure effectiveness and efficiency
  • The necessity for change in supply management systems
  • Steps in assessing the purchasing processes
  • Determining the impact of volume, complexity, redundancy
  • Improvements through technology
  • Application of industry "best practices"
Purchasing: cost center or profit center?
  • Purchasing's value-adding activities
  • How to identify non-value adding activity
Measuring purchasing's performance
  • Focus on process effectiveness and efficiency
  • Organization, functional, team and individual metrics
Who Should Attend

Supply management professionals who would like to obtain the minimum total cost when negotiating with suppliers for goods and services.



Rate and Review this item

Rate this item:



Log in to rate or review this item.