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