About the Course

Strategic cost management is essential for all businesses and is gaining even more importance. As global economic conditions place greater focus on cost reduction to maintain profitability, managing expenses effectively is crucial to ensure ongoing performance in key areas while also enhancing value for the business and its stakeholders. This supply chain training program on strategic cost and value management equips participants with the skills to develop and implement well-planned cost-management strategies that simultaneously improve quality and productivity.

Target Participants

This course is ideal for supply chain and procurement professionals, project managers, finance staff, operational staff, government officials, and any other professionals who want to build their skills in supply chain management.

What you will learn

By the end of the course the learner should be able to:

• Identify the major costs drivers to recommend cost control measures and strategies
• Understand how cost and management accounting information affects the strategic and operational decisions within the organization
• Understand and manage supplier pricing models
• Maximize value for money
• Improve profitability by controlling total costs

Course duration

10 days

Course Outline

Understanding the Value Proposition of Procurement to an Organization 

• Linking organization and procurement objectives
• KPIs to measure procurement performance
• Procurement organizational structures
• Common requisition-to-pay and contract management systems
• Private and public procurement policies

Setting the Strategic Direction

• The strategic planning process & models
• Porter’s 5 forces model
• 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 – Analyzing 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
• Contract Performance Management
• Checking supplier value
• Profit and risk sharing
• What-if analysis to build scenarios and test sensitivity

Implementing Strategic Cost Management

• Barriers to strategic cost management
• Cost-cutting traps and how to avoid them
• Types of budgets, their purpose & limitations
• Types of controls – personnel action & results controls
• Tools and techniques in decision making.

Training Approach

This course is delivered by our seasoned trainers who have vast experience as expert professionals in the respective fields of practice. The course is taught through a mix of practical activities, theory, group works and case studies.

Training manuals and additional reference materials are provided to the participants.

Certification

Upon successful completion of this course, participants will be issued with a certificate.

Tailor-Made Course

We can also do this as a tailor-made course to meet organization-wide needs. Contact us to find out more info@trainingsinkigali.com

Payment

The training fee covers tuition fees, learning materials, and training venue. Accommodation and airport transfer are arranged for our participants upon request.

Payment should be sent to our bank account before start of training and proof of payment sent to info@trainingsinkigali.com