This program explores key concepts of Strategic Cost/Price Analysis, Value Analysis, and Total Cost of Ownership that will move today’s supply management organization from its typical tactical focus to the strategic focus needed to successfully implement the processes and methods needed to reach world-class performance.
Course Objectives
Explore the Elements of Cost In Supplier’s Price
Understand the differences in international labor rates
Understand how to Develop a “Purchasing Coding System”
Learn How Volumes Should Impact Price
Discover Supplier’s Different Pricing Models
Explore Issues of Supplier/Contractor Overhead Expenses
Experience the Development of A Purchase Price Index
Obtain Supplier's Price Breakdowns
Learn how to Get More Time to Work on Strategic Issues
Develop Skills in Negotiation Planning and Strategies
Understand Methods of Price and Cost Analysis
Apply Concepts of Value Analysis
Understand the Development of "Should Cost"
Learn the Types of TCO Systems
Learn about the Implementing TCO Analysis
Defining the Supply Management Mission and Vision
Stages to World Class Supply Management
Change and Becoming More Strategic
Supply Management Skill Sets
Developing the Spend Analysis
Creating Time to be Strategic
The ABC (Pareto) Analysis
Material/Services Purchasing Code Development
Supplier Pricing Models
Defining Cost and Price Analysis
Difference Between Cost and Price Analysis
Selection Tool
Methods of Price Analysis
Historical Analysis
Working with Producer Price Indexes
Developing the Organization’s Purchase Price Index
Estimating Cost Relationships
Methods of Cost Analysis
Major Elements of Cost
What and How Important Are Supplier Overheads
Sources of Cost Information
Developing “Should Costs”
Requesting Supplier Cost Info
Issues In Analyzing Supplier Cost Breakdown
Global Industrial Labor Rates
Working With Currency Exchange Rates
Cost Volume Profit Analysis
Fixed and Variable Costs Defined
Use of Cost Volume Relationships
Calculating Fixed and Variable Costs Algebraically
Defining Value Analysis?
The Test for Value List
The Supplier Value CheckList
Change in Supply Management
Definitions of TCO
Objectives of TCO
Barriers to TCO
Process Flow Diagrams
Approaches to TCO
Dollar Model
Value Model
Total Cost Modeling of the Supply Chain
Implementing TCO
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