Course Details
Resisting Price Increases and Implementing Cost Improvement Initiatives
When the objective is to lower cost and prevent supplier price increases, world-class organizations look closely at what and how they buy. Those involved in the Supply and Contracting activities are critical contributors to the organization ability to achieve high-level performance and will bring dramatic bottom line impact when equipped with the skills to both resist supplier price increases and identify and implement savings opportunities in today volatile marketplace.
Member Price: $1,395.00
VIRTUAL CLASS
Date
Oct 9-10, 2024
Location
Additional Information
Description
What You Will Learn:
- How to be on the road to world-class in cost reductions
- Six steps to resist price increases in materials and services and how to find savings opportunities for your organization
- Sixteen types of cost reduction and cost avoidance
- Elements of price
- Understanding the supplier’s indirect cost
- Effective processes for data mining
- The criticality of the ABC analysis
- A procedure for reporting cost improvements
- Criteria for determining fair and reasonable profit
- Models for developing “should cost” and preparation for negotiations
Virtual Class Schedule:
Day 1 - 10:00 am ET - 1:30 pm ET / 7:00 am PT - 10:30 am PT (3.5 hours), Break for Lunch
Day 1 - 2:30 pm ET - 6:00 pm ET / 11:30 am PT - 3:00 pm PT (3.5 hours)
Day 2 - 10:00 am ET - 1:30 pm ET / 7:00 am PT - 10:30 am PT (3.5 hours), Break for Lunch
Day 2 - 2:30 pm ET - 6:00 pm ET / 11:30 am PT - 3:00 pm PT (3.5 hours)
Course Overview & Goals:
- Purchasing Savings Impact on the Bottom Line:
- The need for change
- Purchasing Savings Model
- Essential issues in cost reduction initiatives
- Best practices for cost reduction initiatives and reporting
- Savings Reporting:
- Cost reduction reporting procedure
- Difference between cost reduction and avoidance
- How purchasing has been obtaining savings
- Types of reductions
- Develop rates to use in savings reporting
- Sample reporting form
- Data Mining & Opportunity Assessment:
- Sources of spend data
- Developing the spend profile
- Developing the ABC Analysis
- Analyzing the spend profile
- Developing opportunity hypotheses with user group brainstorming sessions
- The improvement opportunity form
- The Value of the Market Price Indexes
- What are Producer Price Indexes and where are they found and how to use them
- Cost Improvement Methods
- Understanding of the supply marketplace
- Price and cost analysis
- Cost elements that comprise the price
- Understanding supplier overhead
- Fair and reasonable profit
- Developing “Should Cost”
- Resisting price increases
- Early purchasing and supplier involvement
- Negotiations preparation
- Value analysis
Who Should Attend:
Managers and professionals in supply management and procurement; Materials, Contracts, Projects, Maintenance, Operations, and Financial Managers; all other Managers and professionals interested in lowering total cost and increasing productivity and profit contributions from better supply management operations.
Terms And Conditions
Virtual Learning Transferals: Registrations are transferable without any charge to another ISM Virtual Learning Course occurring within 12 months of the original purchase. Transferring registrations to another party are subject to price variance or change based on membership status and an additional $50 fee will be incurred.
Cancellations Virtual Learning: Cancellations more than 5 weeks before the date of the course will incur an administrative charge of 50 percent. Cancellation within 5 weeks of the date of the event will be charged the full fee. You must notify ISM in writing of a cancellation.
Tax Deduction: The Internal Revenue Service may permit an income tax deduction to U.S. residents for expenses (including registration fees, travel costs, meals and lodging) incurred in pursuit of continuing professional education. Consult your tax adviser for details.