WORKSHOP OVERVIEW
Cost Modeling is more crucial and powerful than simply price analysis. In fact, computer software can simply take three or four quotes and pick the lowest one. When purchasers transition from tactical buying to strategic Supply Management, their ability to do Cost Modeling is where they really earn their salary. For it focuses on the cost structure of a product or supplier. In fact, the definition is: “a technique used by purchasers to better understand the logic behind a supplier’s pricing, especially as it pertains to materials, direct labor, and overhead expenses. It is typically used to support pricing, and lead to a better understanding of the process that culminates in a make or buy decision.”
Understanding supplier and product costs can help the Supply Management professional, develop an appreciation of important cost drivers, which provides a starting point for cooperative relationships to reduce total supply chain costs. Also included in the course is an understanding of budgeting as a pre-cursor to good Cost Modeling and being able to differentiate between Cost Avoidance, Cost Reduction, and Cost Containment.
YOUR TAKE AWAYS FROM THIS WORKSHOP
- Prepare an accurate and meaningful budget
- Drill into costs as opposed to simply comparing prices
- Develop a robust Total Cost of Ownership (TCO) model
- Prepare a Should Cost prior to discussions and negotiations with suppliers
- Mutually determine Target Cost so have a win-win price with suppliers
WHO SHOULD ATTEND
This workshop has been researched and designed for Procurement professionals i.e. Directors, Heads, Managers, and Officers from:
- Supply Chain
- Procurement
- Purchasing
- Sourcing
- Logistics
- Inventory Management
- Warehousing
For further information, kindly click on the request event brochure button.