Compare courses
Register
ICTD International Centre for Training and Development

Controlling Prices and Cost Effective Expediting

This course has no confirmed dates in the future. Subscribe to be notified when it is offered.

Relevant courses

Course format
Starting after
Ending before

Disclaimer

Coursalytics is an independent platform to find, compare, and book executive courses. Coursalytics is not endorsed by, sponsored by, or otherwise affiliated with ICTD International Centre for Training and Development.

Full disclaimer.

Description

In the world today it is not unusual for more than 50 % of an organization’s revenue to be spent on goods and services – everything from raw materials to overnight mail. So, when the goal is to increase earnings by lowering costs, World-class organizations look closely at their purchasing strategies. Success in purchasing is dependent not only on an awareness of the potential opportunities, but more importantly, and the focus of this seminar, is the knowledgeable implementation of the methods, processes, and techniques that should be utilized in order to become a leader in obtaining real supply management savings. The seminar will combine a variety of instructional methods including lecture by an experienced practitioner and consultant, exercise and role playing, group discussions covering current practices and their relationship to the implementation of new concepts.

Course Objectives

By the end of the course, delegates will be able to :

  • Recognize where Expediting sits within the overall procurement & supply process.
  • Describe the factors that determine the nature & frequency of expediting to be applied to a purchase order.
  • Appreciate the difference between activity and progress.
  • Identify what needs to be done at each step in the delivery process – from supplier’s premises to receipt at company site.
  • Understand the value of effective communications with many groups during thedelivery period.
  • Assess their own expediting skills, knowledge & understanding against a model profile

Course Outline

Day 1

Continuous Improvement in Cost and Productivity

  • The Need For Change
  • How Do Other Functions View Purchasing
  • A Purchasing Savings Model
  • Total Cost of Ownership Models
  • Continuous Improvement Skill Sets
  • Cost Reduction Initiatives
  • Cost Savings Reporting Procedure
  • Data Mining
  • Establishing A Strategic Focus With The ABC Analysis
  • Modern Methods Of Analyzing The Spend

Day 2

Defining Cost Reduction Opportunities

  • User Group Brainstorming Sessions
  • Developing Company Purchase Price Index And Comparing To External Indexes
  • Understanding Of Supply Marketplace And How Suppliers Price
  • Benchmarking
  • Process mapping To Eliminate Low Value Activities
  • Developing Purchasing Material/Services Strategic Plans
  • Resisting Price Increases
  • You Will Never Be Better Than Your Suppliers
  • Supplier Performance Measurement
  • Cost Saving Methods

Day 3

Methods of Price Evaluation

  • Price Justification
  • Model For Selecting Analysis Methods
  • Methods Of Price Analysis
  • Competition
  • Historical Prices
  • How much Profit Is Fair
  • Methods Of Cost Analysis
  • Breaking Down The Elements Of Cost
  • Developing “Should Cost”

Day 4

Successful Negotiations

  • Our Responsibilities As Agents
  • Negotiation Skills Sets
  • Steps In Negotiation Preparation
  • Methods Of Persuasion
  • What Does Win/Win Really Mean?
  • Determining The Issues
  • Defining Issues For Specific Contract Provisions
  • Payment Terms
  • Progress Payments
  • Warranties
  • Spare Parts
  • Rating & Valuing Issues
  • Standards Of Ethics In Purchasing And Contracting Conduct

Day 5

Determining Strengths and Weaknesses

  • Evaluating Your Position
  • Know Your BATNA
  • Analyzing The Other Side
  • Negotiation Objectives Diagram
  • Negotiations Planning Forms
  • Prepare The Negotiation Team
  • Tips For The Actual Negotiation
  • Participants will negotiate model cases and discuss the results to provide an opportunity for hands on experience

Course Methodology

A variety of methodologies will be used during the course that includes:

  • (30%) Based on Case Studies
  • (30%) Techniques
  • (30%) Role Play
  • (10%) Concepts
  • Pre-test and Post-test
  • Variety of Learning Methods
  • Lectures
  • Case Studies and Self Questionaires
  • Group Work
  • Discussion
  • Presentation

Who should attend

  • Contracts, Purchasing, and Procurement personnel
  • Engineering, Operational, Project, and Maintenance personnel
  • And all others who are involved in the planning, evaluation and management of purchasing, renders, and contracts that cover the acquisition of materials, equipment, and services, and who are in organizations whose leadership want high levels of competency in those involved in these activities.

Files

Detailed Description
Detailed Description
Show more