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Training Overview

Executive Management has increased its dependency on Supply Management to be a major source of improving the bottom line. As a result, a vast majority of CPOs see Cost Reduction as their top business strategy. Savings Initiatives, when properly implemented, have resulted in dramatic reductions in cost and significant improvements in productivity across the entire organization. As in all initiatives, success is dependent not only on an awareness of the potential opportunities, but more importantly, the knowledgeable implementation of the ideas, processes, and techniques that should be utilized.

This seminar focuses on the many savings methods for both Direct and Indirect organizational spending that have been used to reduce cost, resist price increases, and increase the stature of the supply management function and those in it.

Upon completion of this seminar, participants will know:

• Best Practices in Savings Initiatives and Reporting.
• How to Resist Price Increase for Purchased Goods and Services
• Understand Processes for Data Mining
• Be Given the Criticality of the ABC Analysis and to Use it to Save Time
• Many Ways that Procurement has Been Reducing Cost
• Working with Market Indexes to Determine Price Changes
• Process for Developing a Purchase Price Index for Your Organization
• Major Elements that Should be in a Strategic Sourcing Plan
• Methods of Price and Cost Analysis
• Major Elements of Cost in a Supplier Price
• What Should Determine the Supplier’s Profit
• What and how Important are Supplier Overheads
• Value Analysis
• Developing Should Cost for a Manufactured Part and for a Service
• Negotiations Best Practices
• How to Deal with Economic Price Adjustments Clauses in Volatile Markets

Exercises and Checklists:

• Mark up pricing,
• Margin pricing,
• Price volume relationship,
• Using historical data from purchase price index,
• Should cost estimation.
• Should cost sample & checklist,
• Cost estimating Summary sheet.
  
• Indirect Cost Pool template cum checklist.

Who Should Attend:

• Supply Management, Materials, Contracts, Purchasing Managers, Buyers, Contract Administrators, Finance, Operations, Projects or any other Managers or Professionals involved in resisting cost increases or looking for savings relating to the purchase of goods, equipment, supplies, and services.

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