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PROCUREMENT COST ANALYSIS AND CONTROL——BENCHMARKING ENTERPRISES BEST PRACTICES

Facing the global economic recession: subordinated debt crisis in America, the depression of the European economy, the appreciation of RMB, the increases on material price and the continuously rising cost of labor …… surviving being first and foremost and development being secondary is becoming the first selected strategic guideline of many multi-national corporations. The competitive advantage of cost is obviously very important!

Procurement cost accounts for 70% of your total costs, professional and effective procurement cost management can help you achieve a strategic competitive advantage.

But procurement cost control does not mean to simply cut cost, it actually is a systematic project. To simply cut procurement cost may bring a lot of risks to the company, such as quality risk, supply-in-time risk and technology risk, etc. Thus procurement cost management should consider company strategy and the development of long term sustainable core competence……



Training Objectives

To gain a good command of the contents, characteristics and basic management concepts of procurement cost
Understand the effects of strategic purchasing decision on costs
Know the professional method and skill of reducing procurement cost
Sharing the procurement cost control experience of fortune 500 companies

 

Training Attendees

General manager, factory manager, operation manager and related middle-and top level managers
Purchasing controller, purchasing manager, cost control staff and related staff in charge of supply chain management
 
 
       
Training Outline
 


Modern purchasing pattern
 
  • Purchasing and purchasing function positioning
  •  
  • Challenges of competitive environment
  •  
  • Relationship between procurement and other functions
  •  
  • Impacts of procurement cost on operating performance


  • Analysis on procurement cost
     
  • What is procurement cost?
  •  
  • What is total procurement cost TCO?
  •  
  • The three-dimensional procurement cost
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  • Purchasing function and effects on procurement cost
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  • Three methods of procurement cost control: operation method, technology method and management method


  • Analysis on strategic procurement cost
     
  • Company strategy and procurement cost target
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  • Selection on key procurement cost
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  • Impacts of supplier relationship on procurement cost
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  • Impacts of supply chain on procurement cost strategy


  • Method of procurement cost control
     
  • Impacts of design activity on procurement cost
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  • Commonly used method of reducing procurement cost during design
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  • Target costing
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  • Application of VA/VA in demand analysis


  • How to reduce purchasing process cost
     
  • Purchasing amount and risk matrix analysis, reducing the total procurement cost
  •   - The purchasing strategy of low purchasing volume/low risk material
      - The purchasing strategy of low purchasing volume/high risk material
      - The purchasing strategy of high purchasing volume/low risk material
      - The purchasing strategy of high purchasing volume/high risk material
     
  • Purchasing process optimization
  •  
  • Technology of reverse auction purchase
  •  
  • Electronic purchasing skill (case)


  • TCO method of procurement cost control
     
  • Total cost structure and modal build up
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  • The case and calculating of SCOTT company’s MRO total procurement cost
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  • The case and calculating of equipment purchasing total cost
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  • The case and calculating of material purchasing total cost


  • Analysis of supplier cost price
     
  • Accounting base of procurement cost analysis:
  •   - The concept and calculating of discount
      - Equipment selection based on return rate analysis
      - The characteristics of variable/fixed and mix costs
     
  • Calculate supplier’s cost break-even point and pricing by cost model
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  • Simple price analysis model and purchasing price calculation
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  • Analysis and calculation on discount amount
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  • The thirty-six back hole in supplier quotation (exercise)
  •  
  • Learning curve and calculation of supplier cost pricing


  • Continuously reducing procurement cost
     
  • Operation method of procurement cost control
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  • Principle of continuously reducing procurement cost
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  • Application of procurement cost control method within production cycle
  •  
  • Case of analysis of company procurement cost annual target
  •  
  • Q&A
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    City
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    Price
    Shanghai
    2
    5900
    Shenzhen
    2
    5900
     
    Call For Registration:
    +86 21 58362000 810


     
     
    RECENT TRAINING
    > 20/07/20-21 /¥5900 / Shenzhen
    > 20/11/16-17 /¥5900 / Shanghai


     
     
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