Cost Reduction Training
Delivering Maximum Value and Reduced Costs through Strategic Sourcing, Procurement and Supplier/Demand Management
This highly practical 2-day workshop facilitates participants to examine, develop and implement viable practical strategies on procurement of equipment, materials and services in the context of the Engineering & Manufacturing business – which reduce costs and add value without compromising quality, supplier relationships, HSE and productivity.
By attending this 2-day industry training workshop, participants will be able to:
• UNDERSTAND the need for more strategic and innovative SCM approaches in order to deliver maximum value at minimum cost;
• IDENTIFY opportunities within the procurement and contracting process for short and long term savings and improvements;
• DEVELOP and IMPLEMENT overall cost reduction initiatives and value realization plans;
• LEARN a range of available strategies to work with the supply chain to reduce costs in a pragmatic way;
• APPRECIATE invaluable tools and techniques on spend data analysis;
• HEAR and SEE real life examples of cost savings:.
This course is designed for all professionals who are interested in optimizing and reducing costs through strategic procurement and supply chain management including those with the following roles and functions:
• Procurement/Supply Chain
• Tender or Bidding Managers
• Contract Managers
• Cost Management
• Commercial Managers
• Materials and Inventory Control
• Maintenance and Operations
• Project Engineers and Project Managers
• Others who deal with Materials & Services Procurement
• Defining Cost Reduction
• Cost Reduction vs. Cost Avoidance – Examples
• Direct Spend cost savings
• Indirect Spend cost savings
• “What’s in it for me?” –the key question.
II. PROCESS & PROCEDURES
• Process & Procedures – prioritising, optimising and rationalising
• Cost reduction through process mapping – Examples and Practical
• Standards and Specifications – the good, the bad and the ugly.
• Removal of “gold plated” Products – Case Study
• Alternative commodities review – Case Study
• Reuse, Reclaim, Refurbish, Recycle – Case Study
• Time to service – are we ‘over servicing?’
• Resources minimisation – What do we actually need?
• Scheduling– how to optimise schedules
• Multi tasking and cross disciplines – Case study
V. MANAGING CONTRACTS
• Discounts –types and benefits – Example models
• Rebates–types and benefits – Example models
• Retendering – costs and benefits; market checks
• Re-negotiation – Group Practical
• Incentivisation – Practical
• Managing External Expenditure
• Outsource your tailspend – Example and Case Study
• Cooperative Procurement – Examples
• Demand Management – do we know what we really need?
• Delivery and scheduling – where and when do we really need it? Is early delivery costly?
• Negotiation skills set – what is needed? – Group Practical
VII. IMPORTANCE OF SPEND ANALYSIS
• What are you spending? How much? With who?
• On what?
• By whom?
• Reducing, consolidating, de-specifying, collaborating – Examples and Practical
• Curbing maverick spend – the internal problem
• Supplier rationalisation – Practical
VIII. INVENTORY MANAGEMENT
• Spares and parts – the necessary and the overkill – Releasing unused asset value
• Secondary market – sell those spares – Examples
• Secondary market – buy those spares – Examples
IX. TOOLS and TECHNIQUES
• Spend Analysis
• Whole Life Cost
• Contract/Supplier Criticality
• Supplier Positioning
• ‘Should” Cost models
• Cost Analysis
• Purchase Price & Cost Analysis Models
All the above demonstrated as examples/case studies with participants interactive practicals
Duration: 2 Days
Cost: £495 + VAT