Cost Savings & Resisting Price Increases Best Practice
Cost Improvements Initiatives, when properly implemented, have resulted in dramatic reductions in cost and significant improvements in productivity across the entire organization. As in all initiatives, success is dependent not only on an awareness of the potential opportunities, but more importantly, the knowledgeable implementation of the ideas, processes, and techniques that should be utilized.
This seminar focuses on Resisting Price Increases and Cost Improvement Initiatives and the many savings methods that have been used to reduce cost over the life of the product or service and across the entire supply chain.
I. Course Objectives:
- How to be on the “Road to World-class” in savings initiatives
- 6 steps to resist Price Increase for purchased goods and services
- Understand processes for data mining
- Be given the criticality of the ABC analysis and to use it to save time
- 42 ways Procurement has been reducing cost
- 6 step process for developing a purchase price index for your organization
- Receive a procedure for reporting cost improvements
II. The organization will benefit by:
- Reduced cost of Purchased material
- Reduced cost of Purchased services
- Improved Supplier Performance
- Higher Productivity of Purchasing & Contract Personnel
- Greater strategic focus of those involved in Supply Management
III. Attendees will gain by participation in this program as a result of:
- Increased skill sets in finding savings opportunities
- A greater sense of professionalism
- Learning more methods cost improvement
- Greater ability to lead continuous improvement programs
- Increased recognition by the organization due to improved performance
IV. Training Methodology:
This seminar will combine 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.
V. Who Should Attend:
Materials, Contracts, Purchasing Managers, Buyers, Contract Administrators, Finance, Operations, Maintains, Projects, or any other Managers or Professionals involved in resisting cost increases or looking for savings relating to the purchase of goods, equipment, supplies, and services.
VI. Seminar Outline-Key Learning Objectives
Session 1: Purchasing Savings Impact on the Bottom Line
This session sets the stage for the importance of the Supply Management function, how procurement savings go right to the bottom line, and the importance of having an accurate, up-to-date Spend Profile and analysis methods.
- Purchasing Savings Model
- Resisting Price Increases
- Developing The Spend Profile
- Developing the ABC Analysis.
Session 2: Savings Reporting
A Cost-Saving Reporting Process is essential for successfully resisting price increases, obtaining continuous cost improvements, and motivating people to search for savings.
- Best Practices For Cost Reduction Initiatives & Reporting
- Identifying the Opportunities In Cost Reduction Initiatives
- Cost Reduction Reporting Procedure
- Difference Between Cost Reduction And Avoidance
- Types Of Reductions
- Develop Rates To Use In Savings Reporting
- Sample Reporting Form
Session 3: The Value of the Purchase Price Index
Why and how we must develop a Key Performance Indicator (KPI) to show positive savings performance even when prices are increasing.
- What Are Producer Price Indexes
- Where Can We Find Them
- The Steps Of How To Developing An Organization Purchase Price Index And Comparing To External Indexes
Session 4: Some Cost Improvement Methods
This session presents some very important saving methods that bring significant impact.
- Defining Total Cost of Ownership
- Total Costs of Ownership Models
- Understanding Of Supply Marketplace
- Price & Cost Analysis Defined
- Value Analysis
- List Of Ways Of How Purchasing Has Been Obtaining Savings
Comments from Previous Attendees
“That was a timely topic on cost saving. Better than expected. I had not had good experience with online learning BUT THIS EXCEEDED MY EXPECTATIONS.” -- Sourcing Manager, Peerless Pump Company
“Good training. Very practical, insightful advice and theory. Excellent examples and exercise. The entire training added value to my work. - I do not purchase services but you never know when this information might become useful on future jobs. ” -- Program Buyer, Neapco