Strategic Cost and Value Management in the Supply Chain

• Identify the major costs drivers to recommend cost control measures and strategies
• Analyze the Elements of Cost in Supplier’s Price
• Evaluate total life cycle costs
• Analyze costs within the organization
• Create an approach to Strategic Cost management

CONTENT

Setting the Strategic Direction

• The Strategic Planning Process & Models
• Routes to Competitive Advantage
• Price, Cost and Value
• Essential Cost Drivers and Potential Savings
• Stages to World Class Cost Management

Price Down – Understanding and Managing Price

• Supplier Pricing Models
• Krajlic Supply Positioning Matrix
• Methods of Price Analysis
• Strategies and Tactics
• Competition and Partnership – routes to better pricing

Cost Down – Analyzing and Managing Internal and Supplier Costs

• Total Cost of Ownership / Life Cycle Costing
• Methods of Cost Analysis
• Major Elements of Cost
• What and How important are Supplier overheads?
• Sources of Cost Information
• Logistics Costs

Driving Cost Out – Supplier Engagement and Cost Elimination

• Inventory, Warehousing and Shipping Costs including Economic Order Quantity
• Cost-Volume-Profit Analysis and Break-Even Analysis
• Cost Engineering
• Fixed and Variable Costs Defined
• Checking Supplier Value
• Profit and Risk Sharing
• What-if Analysis to Build Scenarios and Test Sensitivity

Implementing and Measuring Strategic Cost Management

• Barriers to Strategic Cost Management
• Key Performance Metrics
• Cost Cutting Traps and How to Avoid Them
• Types of Budgets, Their Purpose / Benefits & Problems & Limitations
• Types of Controls – Personnel Action & Results Controls

FOR WHOM:

Stores, Purchasing and Logistics Personnel in the Public and Private Sectors.

TRAINING METHODOLOGY

The training methodology combines lectures, discussions, group exercises and illustrations. Participants will gain both theoretical and practical knowledge of the topics. The emphasis is on the practical application of the topics and as a result participant will go back to the workplace with both the ability and the confidence to apply the techniques learned to their duties.