Strategic Cost and Value Management in the Supply Chain

OBJECTIVES
• 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
• Analyse costs within the organisation
• Create an approach to Strategic Cost management

CONTENT
Setting the Strategic Direction
• The Strategic Planning Process & Models
• Routes to Competitive Advantage
• Price, Cost and Value
• Essential Cost Drivers and Potential Savings
• Stages to World Class Cost Management

Price Down – Understanding and Managing Price
• Supplier Pricing Models
• Krajlic Supply Positioning Matrix
• Methods of Price Analysis
• Strategies and Tactics
• Competition and Partnership – routes to better pricing

Cost Down – Analysing and Managing Internal and Supplier Costs
• Total Cost of Ownership / Life Cycle Costing
• Methods of Cost Analysis
• Major Elements of Cost
• What and How important are Supplier overheads?
• Sources of Cost Information
• Logistics Costs

Driving Cost Out – Supplier Engagement and Cost Elimination
• Inventory, Warehousing and Shipping Costs including Economic Order Quantity
• Cost-Volume-Profit Analysis and Break-Even Analysis
• Cost Engineering
• Fixed and Variable Costs Defined
• Checking Supplier Value
• Profit and Risk Sharing
• What-if Analysis to Build Scenarios and Test Sensitivity

Implementing and Measuring Strategic Cost Management
• Barriers to Strategic Cost Management
• Key Performance Metrics
• Cost Cutting Traps and How to Avoid Them
• Types of Budgets, Their Purpose / Benefits & Problems & Limitations
• Types of Controls – Personnel Action & Results Controls

FOR WHOM:
Stores, Purchasing and Logistics Personnel in the Public and Private Sectors.

Methodology
The training methodology integrates lectures, interactive discussions, collaborative group exercises, and illustrative examples. Participants will acquire a blend of theoretical insights and hands-on practical experience, emphasizing the application of learned techniques. This approach ensures that attendees return to their professional environments equipped with both the competence and self-assurance to effectively implement the acquired skills in their responsibilities.

DATE:

1ST BATCH:        8th – 11th Apr,                  2025     

2ND BATCH:       14th – 17th Oct,              2025