Strategic Cost and Value Management in Procurement
Purchasing, Logistics & Supply Chain Management
Course Description
INTRODUCTION
This Strategic Cost and Value Management in Procurement
training course will have a deep dive into Total Cost of Ownership and value
creation by strategic procurement, which is critical for organizations to be
able to compete at the global level with sustainable profitability. It will
look at how to deliver acquisition cost reduction, TCO optimization, cost
avoidance, and value creation in modern organizations.
Strategic cost management is vital and increasingly
important for all organisations. Competitive bidding with as many bidders as
possible is the only way to help organizations buy goods or services at the
lowest price such that the organizations can become more competitive than their
peers? This common and traditional approach will remain a major mechanism in
both private and public procurement. Still, there is a much bigger picture and
scope that contributes to the competitiveness of organizations. Time-To-Market,
Total Life Cycle Cost, Brand Image, Corporate Reputation, etc. will all
contribute to the competitiveness of modern organizations. This Strategic Cost
and Value Management in Procurement training course leads the participants
through the development and implementation of carefully crafted strategies for
managing costs while maximizing value for the more significant organizations.
Objectives
By the end of this training course, the participants will be
able to
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 or Total Cost of Ownership
(TCO)
Analyse costs within the organisation
Create an approach to Strategic Cost management
The benefit of this course
Understanding the impact of Cost Management in Procurement
Understanding how cost and management accounting information
affects the strategic and operational decisions within the organization
Understanding of profitability of key customers, and how
this effect strategic cost management in the supply chain
Crafting the right strategies to deliver quantifiable value
to the organization
Understanding the range of methodologies and techniques
required for Total Cost of Ownership reduction
Being respected as a change champion to lead all departments
in TCO reduction
Being more respected by suppliers for acting more
professionally
Adding consulting skills to his/her competence
Course Outline
DAY 1
Understanding the Value Proposition of Procurement to a
Corporate
Linking Corporate and Procurement Objectives
World-Class Procurement Performance Benchmarking
KPIs to Measure Procurement Performance
Typical Procurement Organizational Structures
Common Requisition-To-Pay and Contract Management Systems
Private and Public Procurement Policies
DAY 2
Tools and Techniques in E2E Procurement Category Management
Supply Market Analysis
Market Approaches
Best-Fit Contracting Strategy
Contract Award
Contract Performance Management
DAY 3
Cost Management and Value Creation
Understanding the Financial Statements
Applying and Interpreting Present Net Value
Supply Chain Cost Modelling
Total Cost of Ownership and Total Lifecycle Cost
Porter’s Five Forces
Value in Post Contract Award Contract Management
Tools and Techniques in Decision Making
Decision Trees
Root Cause Analysis
DAY 4
Selling Strategic Procurement to Stakeholders
Create the Vision and Mission Statement
Quantify the Tangible Benefits and Cost to Implement the
Strategies
Introduce the Organization, Process and Systems to Realize
the Strategic Procurement Benefits
Specify the Deliverables and Milestones
Estimate the Resources and Time Needed for Implementation
Identify Stakeholders and Create Stakeholders Management
Plan
Create Risks Mitigation Plan for the Project
Prepare Communication Plan
Influencing Skills
DAY 5
Create A Deep Dive Category Strategy
Define the Deliverables of a Deep Dive Category Strategy
Introduction of Three Categories for Teams to Choose From
Organizations Expectation
Category Spend Data
Supply Market Profiles
Stakeholders’ Positions