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Demand & Supply Chain Management Evolution

Course Detail

Resisting Price Increases and Implementing Cost Improvement Initiatives

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Education Center: ISM - Institute for Supply Management
Date: Please check (on your top-right) for a new edition
City: Chicago, IL

Duration: 2 days

Is it time for you to step up to the plate and resist price increases while helping to lower costs for your organization? If so, this seminar is designed to make you a cost improvement hero. It will equip you with the skills to resist supplier price increases, and identify and implement cost reduction opportunities in today's volatile marketplace. This seminar will put your organization on the road to world-class cost reduction and improvement.

This meeting will run from 8:30 AM until 4:30 PM daily.

Who should attend

Supply management professionals involved in resisting cost increases or looking for savings relating to the purchase of goods, equipment, supplies and services.

You will learn

  • Steps to resist price increases in materials and services, and how to find savings opportunities for your organization
  • Effective processes for data mining
  • How to use economic price adjustment clauses
  • The criticality of the ABC analysis
  • A process for developing a purchase price index for your organization
  • A procedure for reporting cost improvements
  • How to develop a strategic purchase plan.

You will earn 21 CE hours

Course outline

  1. Purchasing savings impact on 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 and reporting; A checklist resulting for experiences
  2. Savings reporting: 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
  3. Data mining & opportunity assessment: Sources of spend data; Developing the spend profile; Commodity codes; Developing the ABC Analysis; Analyzing the spend profile; Developing opportunity hypotheses with user group brainstorming sessions; The improvement opportunity form
  4. Value of the purchase price index: What are producer price indexes and where they are found; The steps of how to develop an organization purchase price index and comparing it to external indexes
  5. Cost improvement methods — Part 1: Total cost Of ownership; Benchmarking; Understanding of the supply marketplace; Price and cost analysis; The elements that make up price; Resisting price increases
  6. Cost improvement methods — Part 2: Re-engineering processes; Early purchasing and supplier involvement; Economic price adjustment clauses; Developing commodity plans; Negotiations; How has purchasing been obtaining savings.

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