Who Should Attend
Those who are new to working in a purchasing environment with little or no purchasing experience; those who would like to review their existing skills in developing and optimising purchasing capability in managing supplier costs; and those outside of the purchasing function (e.g. budget-holders and finance professionals) who are stakeholders in the purchasing process.
Overview
This workshop seeks to achieve a balance between theory and practical advice with expert coaching and guidance. Participants will develop an understanding of the principles of managing costs in purchasing and procurement activities, to be able to manage and optimise cost performance for their organisation.
Outcomes
At the end of this training programme participants will be able to:
- Understand why organisations need to control supplier costs
- Understand the difference between cost and price, and what drives pricing in supply markets
- Learn a range of cost control techniques to improve an organisation’s cost performance
- Learn how to optimise value as a function of cost
- Understand the difference between cost containment, cost avoidance and achieving savings
Content
The programme is participative and involves exercises in small groups, trainer input and the use of case studies and examples to enhance learning. The topics we will cover are:
- Identifying improvement potential through opportunity analysis
- Cost avoidance and cost containment
- Markets and cost drivers
- Price versus cost
- Using comparative analysis to improve cost performance
- Life-cycle costs and the ‘total cost of ownership’
- Quotation analysis and cost breakdowns
- Achieving value for money
- Measuring cost performance
Pre-Course Work
Prior to the course, delegates will be asked to identify areas of spend for which they have direct or indirect responsibility in order to be able to work through real case examples during the programme.
DURATION: One Day
