Events Details
  • March 18-19, 2021 (10 AM – 2 PM EST)
  • Online Course

Course Objectives:
Upon completion of this seminar, participants will know:
- The value of Producer Price Indexes
- 6 Steps in developing a Purchase Price Index
- Elements of Cost that make up the supplier's price
- How Indirect Cost Are Determined And Allocated
- The analytics of evaluating supplier prices
- What is a fair and Reasonable Profit
- Developing "Should Costs"

Organizational Impact:
The organization will benefit by:
- Reduced total cost for purchased goods and services
- Greater focus on strategic sourcing issues
- Better analytics to support procurement decisions and strategies
- A greater level of professionalism and skills in those involved in the purchasing and contracting process

Personal Impact:
Attendees will gain by participation in this program as a result of:
- Increased skill sets in analytical processes
- A greater sense of confidence and professionalism
- Applying increased skills in all phases of the procurement process
- Improved ability to develop best practices supply management strategies
- Increased recognition by the organization due to enhanced performance

Training Methodology:
Participants will increase competencies through various instructional methods, including lectures by an experienced practitioner and consultant, exercises, and group discussions covering current practices and their relationship to implementing new concepts.

Who Should Attend:
- Contracts, Purchasing, Procurement Personnel, Supply Management
- And all others involved in the planning, evaluation, preparation, and management of purchasing, tenders, 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.

Course Summary-Key Learning Objectives 

Session 1: Analytics related to Purchasing Operations
The 1st step in strategic sourcing is developing and analyzing the total spend to develop the strategies that will lead to world-class procurement performance.
- Developing the Spend Profile
- Purchasing Hierarchical Coding
- Data mining using the power of spreadsheets and pivot tables
- The all critical Pareto (ABC) analysis

Session 2:  The Analytics of Strategic Purchasing
How does Senior management measure procurement performance, and how does the supply management function measure itself, particularly as it pertains to pricing performance compared to the market place.
- Key Performance Indicator for Purchasing
- Price Indexes
- Developing the Purchase Price Index

Session 3: Understanding the Suppliers Cost
One of the most critical aspects of successful negotiations is understanding the supplier's cost structure used in developing the price.
- Elements Of Cost That Make Up The Price
- How Indirect Cost Are Determined And Allocated
- What Are Fair And Reasonable Profits

Session 4: Developing Should Cost
"Should cost" estimates independently attempt to construct the supplier's cost structure.  Using this analytical approach, the buyer establishes estimates for an item or service's key cost elements.
- Developing the "Should Cost" of an item
- Developing the "Should Cost" of a service