• Analyze the elements of cost In supplier’s price
• Understand differences in international labor rates
• Evaluate supplier’s different pricing models & analyses supplier’s price breakdowns
• Understand methods of price and cost analysis
• Create an approach to implementing TCO analysis

• Purchasing, Procurement, Contracts, Contract Administration, Projects personnel
• All others who are involved in the planning, evaluation, preparation and management of purchasing and contracts that cover the acquisition of materials, parts, equipment, and services, and who are in organizations whose leadership want high levels of excellence in those involved in these activities.

Day One: Setting the Strategic Direction

• Defining the supply management mission and vision
• Stages to world class Supply Management
• Becoming more strategic in procurement
• Supply Management skill sets
• Developing the Spend analysis
• The ABC (Pareto) analysis

Day Two: How do you know that you got a Good Price?

• Supplier Pricing models
• Defining Cost and Price analysis
• Methods of Price analysis
• Working with Producer Price Indexes
• Developing the Organization’s purchase price index
• Estimating Cost  in relationships

Day Three: Getting a Better Price by Analysing Cost

• Methods of Cost analysis
• Major elements of Cost
• What and how important are Supplier overheads
• Sources of cost information
• Analysing Supplier cost breakdowns

Day Four: Using Price, Volume, International Labour, and Value Analysis

• Global Industrial Labour Rates
• Working with Currency Exchange Rates
• Cost Volume Profit Analysis
• Fixed and Variable Costs Defined
• Defining Value Analysis?
• Checking Supplier Value

Day Five: Total Cost of Ownership (TCO)

• Changing Supply Management
• Defining TCO
• Barriers to TCO
• Approaches to TCO
• Total Cost Modelling of the Supply Chain
• Implementing TCO