Strategic Cost Management in Procurement

Target audience

Procurement and finance managers, and contract and budget officers.

The problem it addresses

Procurement success is often measured by purchase price alone, so the real costs surface later in operations, maintenance and delivery delays. Organizations need a method that looks at total cost and turns procurement into a tool for managing value.

Learning outcomes

• Analyze total cost of ownership rather than purchase price alone.
• Identify cost reduction opportunities without compromising quality.
• Build negotiation strategies based on market and cost analysis.
• Design performance indicators to measure the value procurement delivers.

Daily topics

1. Day 1Cost concepts in procurement and total cost of ownership.
2. Day 2Spend analysis and identifying savings opportunities.
3. Day 3Market and supplier analysis, and negotiation strategies.
4. Day 4Contract management and cost control during delivery.
5. Day 5Performance indicators and building a cost management plan.