Strategic Cost and Value Management in the Supply Chain

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

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.

1ST BATCH:       27th – 29th May, 2020     

2ND BATCH:      10th – 13th November, 2020

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

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

Cost Down – Analysing 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

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

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