Cost Reduction in Procurement

Introduction

This training course has been specifically designed to develop a deep understanding of how to apply viable cost reductions in procurement. This training course will look at how you should take a pragmatic and holistic view to develop a sustainable and viable strategy that concentrates on supplier development, sourcing strategies, category management, win-win negotiation, collaboration and achieving the best price for the best value throughout the whole supply chain, without diminishing the level of service or quality.

On this training course you will learn that strategic direction must not be confused with just “cost cutting” activities that will see the organization apply a reduction in prices of product/service prices from their vendors and contractors. You will learn that tactical plans often concentrate only on price management, whereas more strategic and transformational planning impacts the underlying cost drivers and also highlights the areas of waste and inefficiency.

By attending this training course you will think long-term and learn how to work with all the supply chain to implement a program of cost containment initiatives that examines the efficiency of the supply chain, analyzing wasteful measures and looking at the whole life costing by using relevant spend analysis and Total Cost of Ownership techniques.

This Cost Reduction in Procurement training course will feature:

• Determining the Procurement Strategy
• Conducting Spend Analysis
• Implementing Whole Life Costing
• Category Management
• Sourcing Strategy

Objectives

By the end of this training course, participants will be able to:

• Understand the actual requirements of why a service or product is being procured
• Understand the rationale required for a cost reduction strategy
• Understand the need for change to more strategic and innovative approaches
• Implement strategies to work with the supply chain to reduce costs in a pragmatic way
• Learn how to negotiate and develop a win-win situation
• Conduct spend analysis on all categories
• Implement long term saving initiatives

Training Methodology

This dynamic three day training course is designed to explore a wide range of cost reduction approaches, reflecting the shifts towards strategically focused sources of value from external supply contracts. This training course will utilise a variety of proven adult learning techniques to ensure maximum understanding, comprehension and retention of the information presented.

 This training course will also combine variety of instructional methods including lecture by a world-class subject matter expert in procurement and supply chain strategy. This is a highly interactive and competitive training course where the participants will work and compete in team exercises, group discussions covering current practices and their relationship to the implementation of new concepts.