Cost & Price Strategies
Resisting Price Increases and Implementing Cost Improvement Initiatives: How to Make a Major Impact into Today's Volatile Marketplace
When the objective is to lower cost or prevent cost increases, world-class organizations look closely at what and how they buy. Those involved in the purchasing and contracting activities are critical contributors to the organizations ability to achieve high level performance and will bring dramatic results when equipped with the skills to both resist supplier price increases and identify and implement cost reduction opportunities.
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.
- Know how to be on the "Road to World class" in cost reductions.
- Be given the steps to resist Price Increase
- Understand processes for data mining
- Learn how to use Economic Price Adjustment clauses
- Be given the criticality of the ABC analysis
- Have received many methods of cost improvement.
- Learn a process for developing a purchase price index for your organization
- Receive a procedure for reporting cost improvements
- Outline for developing a Strategic Purchase Plan
Purchasing Savings Impact on the Bottom Line
This sessions sets the stage of the importance of the procurement function and how purchasing savings go right to the bottom line whereas a small % of the sales hits the bottom line.
- The Need For Change
- The Work Matters Purchasing Savings Model
- Essential Issues In Cost Reduction Initiatives
- Best Practices For Cost Reduction Initiatives & Reporting
- A Check List Resulting For Experiences
A Cost Saving Reporting Process is essential for successful results in resisting price increases, obtaining continuous cost improvements, and to motivate people to search for savings.
- Cost Reduction Reporting Procedure
- Difference Between Cost Reduction And Avoidance
- Types Of Reductions
- Develop Rates To Use In Savings Reporting
- Sample Reporting Form
- Continuous Improvement Skill Sets
Data Mining & Opportunity Assessment
This session focuses on the importance of having an accurate up-to-date Spend Profile and methods of analysis.
- Sources Of Spend Data
- Developing The Spend Profile
- Commodity Codes
- Developing the ABC Analysis.
- Analyzing The Spend Profile
- Develop Opportunity Hypotheses with User group brainstorming sessions
- The Improvement Opportunity form
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 pricing is increasing.
- What Are Producer Price Indexes
- Where Can We Find Them
- The Steps Of How To Developing A Organization Purchase Price Index And Comparing To External Indexes
Cost Improvement Methods — Group 1
This session presents some very important saving methods that bring significant impact.
- Total Cost Of Ownership
- Understanding Of Supply Marketplace
- Price & Cost Analysis
- Elements Of Price That Make Up Price
- Resisting Price Increases
Cost Improvement Methods — Group 2
Typical savings methods which result in not only reduced cost but also in improved productivity for the entire organization and even the supply chain.
- Reengineering Processes
- Early Purchasing And Supplier Involvement
- Economic Price Adjustment Clauses
- Long Term Agreements
- Developing Commodity Plans
- Value Analysis
- Reducing Waste In The Supply Chain
- A List Of 42 Ways Of How Purchasing Has Been Obtaining Savings
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.