Price Breakdown Analysis
The course will enable attendees to obtain better purchase prices, negotiate cost reductions and support their sales department with accurate cost modelling thus improving the organisation’s profitability, market position and efficiency. In these tough times much more is expected of the procurement function, this course will provide specific additional knowledge and be a powerful tool when negotiating with suppliers, even and especially when competitive leverage is limited.
Upcoming start dates
Suitability - Who should attend?
Aimed at buyers, cost estimators and category managers who want to improve their knowledge of business input costs for produced/manufactured products and service contracts.
Outcome / Qualification etc.
Attendees will develop their knowledge and skill in understanding the cost breakdown when a business sells products or provides a service. This will enable them to compare and benchmark alternative suppliers where there is competition in the market, provide opportunities to interrogate a suppliers stated cost even when competition is limited and support the negotiating process for a more favourable financial outcome. The course will also improve the ability of the buyer to estimate a future purchase price when required by the sales function to support new projects particularly when seeking new business.
Training Course Content
Direct Costs
Raw Materials / Usage / Purchased parts / Consumables / Direct Labour / Number of Heads / Labour Rates / Machine Costs / Cycle Times / Scrap Rates / Recycling / Packaging & Labelling / Transport (Delivery).
Overheads
Buildings / Indirect Labour / Staff Costs / Utility Costs.
Variables
Currency / Exchange Rates / Return on Investment / Cost Price v Sales Price / Profit Margin / Sales Margin / Profit Mark-Up / Marginal Costing / Applicable Costs.
Comparative Analysis
Improving Knowledge / Identifying Errors / Identifying Opportunities / Supporting the Negotiating Strategy.
Team Exercises
Generating a cost model / Comparative Analysis / Service Contracts / Benefit Forecast.
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Purchasing Management Services - Training Courses in Purchasing, Store and Stock Control
Practical skills for immediate payback in your working environment - This is what PMS - Purchasing Management Services aims to achieve with every course. As a leading provider of purchasing, stores/warehouse and stock control training for purchasing and supply chain...