Price and Cost Management

Course Objectives

To critically examine all aspects of the commercial management and understanding of suppliers in order to drive maximum value from the clients major supply chains. The programme will help equip attendees with an understanding of how suppliers and buyers work within the market context as well as an understanding of how basic economic forces operate and influence organizational costs.

Course Contents

Day One
 
The contribution of effective procurement to corporate performance
Achieving cost reduction through better procurement
Understanding supplier pricing methods
Using break even analysis
Costing systems – understanding the logic concerned with marginal costing, total absorption costing and breakeven analysis
The development of open book costing approaches to encourage the ‘should cost’ of bought out products and services
 
Day Two
 
Purchaser pricing methods, such as fixed, target costing, contract price adjustment and unitary pricing
Understanding accounts- balance sheets, profit and loss statements
Using ratio analysis to understand suppliers costs
The use of investment appraisal and discounted cash flow techniques to achieve total cost of ownership methods
Review and evaluation

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Who Should Attend

Teams that are embarking on a supply chain management approach to the delivery of purchasing and procurement results for the business.

Duration

A 2-day single manned course.
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