Global Learning for Operational Leaders
Introduction
Course overview
The lowest purchase price is rarely the lowest cost. Installation, energy, maintenance, spare parts, downtime, training, logistics, quality failures and disposal can cost far more than the original invoice. At the same time, buyers who do not understand what a product or service should cost to make and deliver negotiate from a position of weakness.
This training course equips procurement and supply chain professionals with two powerful analytical tools. Total Cost of Ownership (TCO) analysis captures all costs across the life of an acquisition so that sourcing decisions reflect true value. Should-cost analysis builds a fact-based estimate of a supplier's costs, giving buyers a strong foundation for target setting, negotiation and supplier development.
Through practical spreadsheet-based exercises, participants learn to build cost models, gather and validate data, handle uncertainty, compare competing offers and present their findings convincingly to budget holders and senior management.
