Supply Chain, Logistics & Warehouse Training

Effective Cost Management in Purchasing

Today, purchasing, procurement, contracting, and supply management professionals must be the most progressive group in the company.  All systems, techniques, and operations theories must be dynamic and responsive to the very latest changes.

Simply put, to remain competitive in a fast-paced, global economy, your forecasting strategies and analytical skills must be top-notch.  Worldwide competitive pressures require a greater contribution from the purchasing and physical supply function as well as suppliers to improve the organization’s relative position on quality, price, technology, and responsiveness.

Effective cost management in purchasing can be your road map to achieving your most critical organizational objectives.

Effective Cost Management in Purchasing is a highly concentrated training that discusses price, cost, and total value analysis theories in the choice of goods and services—those which you may have purchased in the past and those you are considering for the future.

What you will learn in effective cost management in purchasing?

You’ll find out how to determine which data you need, which mathematical formulas to use, and which cost, price, and quality factors you must consider.

You’ll analyze purchase spend history, forecast price and market trends, determine total costs of ownership, analyze fixed and variable costs, conduct best-buy analyses, and utilize should cost analyses of prospective suppliers for qualification of quotes, bids, tenders and proposals.

You’ll also learn how learning curves, break-even analysis, value analysis, total landed cost, target costing, and life cycle costing can help you make far more accurate estimates of cost and value.

The information is not only useful to establish cost improvements, but also to determine which purchasing cost management techniques are the greatest contributors to cost driver improvements.  The information may also be used to determine which types of goods and services are sensitive to various purchasing techniques and whether or not individual buyers are more or less effective in negotiating agreements.  Successful purchasing and procurement depend on good buys, while good buys result from good analysis techniques.

This training emphasizes applications and practical ways to help you on the job and to put your new-found knowledge to work for your organization.  Purchasing and supplier management are changing dramatically.  New approaches and methods offer opportunities to cut costs, reduce waste, avoid non-value added activities, and increase the chance to buy at the lowest overall cost for the best value.  Plan to attend this exciting seminar, Effective Cost Management in Purchasing, to find out how these positive results can be yours.

The key benefits of attending “Effective Cost Management in Purchasing”:

  • Evaluate any purchase using the appropriate mathematical formulas.
  • Realize the importance of price-cost and market intelligence information sources.
  • Identify the “best buy” for a given purchase through price and cost investigation.
  • Negotiate total cost of ownership more effectively with supplier and contractors.
  • Use forecasting and trend analysis techniques to better understand future market conditions.
  • Understand the importance of strategic supplier relationships and their cost driver impacts.
  • Show a measurable contribution to the bottom line due to more effective purchasing decisions and a deeper understanding of the economics of the marketplace.
  • Improve the return on investment from every purchasing dollar and your total spend.
  • Gain a working knowledge of the methods, techniques, and formulas for analyzing purchasing decisions and developing opportunity hypotheses.
  • Estimate cost relationships, employ value analysis, and use purchase price indexes.
  • Select the supplier, the product or service, and the solicitation package that best meet the organization’s needs and budget.
  • Understand the application of payback analysis, rate of return analysis, and time-adjusted rate of return analysis in capital equipment or fixed asset purchases.
  • Put the latest analytic tools to work—during the seminar, in small group project sessions.
  • Conduct informed negotiations with greater confidence and certainty.

Other benefits of “Effective Cost Management in Purchasing”:

  • Recognize the purchasing savings impact on your spend profile.
  • Utilize the Improvement Opportunity Form for self-assessment.
  • Focus on the differences among cost reduction, savings and avoidance.
  • Understand the 8-step life cycle cost analysis procedure.
  • Learn how to construct a break-even analysis chart.
  • Utilize learning curve analysis and coefficients.
  • Conduct make vs. buy or outsourcing acquisition decisions.
  • Apply “should cost”, open book costing, and landed cost
  • Examine target costing techniques and target pricing tools.

Who should attend “Effective Cost Management in Purchasing”?

This training is designed for procurement professionals who want to learn the applications of statistical and financial techniques for analyzing purchasing problems.  It offers a practice-intensive learning experience to anyone responsible for selecting suppliers, negotiating prices and fees, and purchasing goods and services.  Effective Cost Management in Purchasing is recommended for buyers, supply managers, procurement and acquisition staff analysts, contract administrators, commodity and sourcing specialists, purchasing agents, and executives.

Note: Kindly provide company email address. Personal email addresses such as gmail, yahoo, hotmail and others will be filtered automatically by system.

 Effective Cost Management in Purchasing Training  Brochure Image

 

wordpress stats