Buyer’s analysis and savings

Training objectives

Unveil hidden savings and mitigate risk of any cost pressure source

Analyse the price by developing comprehensive cost breakdown

Introduce cost models to regain competitiveness

Reduce emotional discussions and the risk of making poor decisions during negotiations

Benefits from trainings

Participants will learn about best practices used by global corporations to help optimize costs.

Participants will be equipped to engage in meaningful conversations with suppliers about reducing costs and minimizing the effects of any requested price increase.

Participants will become the cost detectives able to decipher offers they receive.

Training description

Together with the participants, we will analyze the cost structure of each component for product, service, serial, and project purchases using practical examples. We will emphasize the early involvement of buyers in the process of defining needs and specifications. Participants will analyze real-life examples from direct and indirect procurement, working with toolboxes developed in Excel by Eveneum. The scope is divided into five areas useful for a professional buyer:

Negotiation preparation: cost breakdown, where suppliers hide their margin
Price reduction: Cost models for products/services, TCO
Inventory management: MOQ, EOQ, Safety Stock
Verification of business partner expectations: Functional Analysis and Value for Money
Product and service optimization: Value Analysis/Value Engineering
Seeking savings in processes and from suppliers: LEAN, Value Stream Mapping

Participants will receive automated Excel forms based on best purchasing practices to use in their work. With these tools, they will be able to decipher suppliers' offers even if the suppliers are unwilling to reveal their Cost Breakdown. The foundation for further negotiations will be data and facts, not emotions!

Scope of training

Main points of the training program:

The role of purchasing in cost prevention, not cost fighting.
Functional specification based on requirements.
Value Analysis/Value Engineering in practice.
Cost breakdown principles.
Cost analysis of services, projects, and products.
The structure and impact of fixed and variable costs on unit cost.
Production rate, hourly rate, and allocation of one-time costs.
Application of the linear cost model in purchasing.
Financial aspects of purchasing: NPV, cash flow, profit and loss statement, and balance sheet.
Use of cost breakdown in negotiations.
Predictive methods, forecasting of expected price.
TCO - Total Cost of Ownership.
VSM - Value Stream Mapping.
Elimination of waste in production and service processes.

Workshop participants will discover that even limited and publicly available information can be used to discuss cost reduction with suppliers!

Trainer

Depending on the training topic, we guarantee a trainer with current business experience in both direct and indirect purchasing.
We invite you to contact us to receive detailed information about our Expert - Trainers.