Strategic Cost and Value Management in the Supply Chain
Objectives
By the end of this training course, participants will be able to:
• Identify the major costs drivers to recommend cost control measures and strategies
• Analyse the Elements of Cost In Supplier’s Price
• Evaluate total life cycle costs
• Analyse costs within the organisation
• Create an approach to Strategic Cost management
Who Should Attend?
This training course is suitable to a wide range of professionals but will greatly benefit the following individuals who belong in the Oil, Gas & Petrochemicals Industry:
• Purchasing, Procurement, Contracts, Contract Administration, Projects personnel
• Professionals who are engaged in planning either at strategic or operational level
• Professionals who are responsible for the management of costs
• Those engaged in the management or operation of projects
• Those responsible for developing, managing or working with budget/cost constraints
• Those with an interest in strategic planning and costs management

Outline
Setting the Strategic Direction
• The Strategic Planning Process & Models
• Porter’s 5 Forces model
• Routes to Competitive Advantage
• Price, Cost and Value
• Essential Cost drivers and Potential savings
• Stages to World Class Cost Management
Price Down – Understanding and Managing Price
• Supplier Pricing models
• Krajlic Supply positioning matrix
• Methods of Price analysis
• Strategies and tactics
• Competition and partnership – routes to better pricing
Cost Down – Analysing and Managing Internal and Supplier Costs
• Total Cost of Ownership/Life Cycle Costing
• Methods of Cost analysis
• Major elements of Cost
• What and how important are Supplier overheads
• Sources of cost information
Driving Cost Out – Supplier Engagement and Cost Elimination
• Inventory, warehousing and shipping costs inc. Economic Order Quantity
• Cost-Volume-Profit Analysis and Break-Even Analysis
• Cost engineering
• Fixed and Variable Costs Defined
• Checking Supplier Value
• Profit and risk sharing
• What-if Analysis to build scenarios and Test Sensitivity
Implementing and Measuring Strategic Cost Management
• Barriers to Strategic Cost Management
• Key Performance Metrics
• Cost cutting traps and how to avoid them
• Types of Budgets, their Purpose/Benefits & Problems & Limitations
• Types of Controls - Personnel Action & Results Controls

Strategic Cost and Value Management in the Supply Chain
Objectives
By the end of this training course, participants will be able to:
• Identify the major costs drivers to recommend cost control measures and strategies
• Analyse the Elements of Cost In Supplier’s Price
• Evaluate total life cycle costs
• Analyse costs within the organisation
• Create an approach to Strategic Cost management
Who Should Attend?
This training course is suitable to a wide range of professionals but will greatly benefit the following individuals who belong in the Oil, Gas & Petrochemicals Industry:
• Purchasing, Procurement, Contracts, Contract Administration, Projects personnel
• Professionals who are engaged in planning either at strategic or operational level
• Professionals who are responsible for the management of costs
• Those engaged in the management or operation of projects
• Those responsible for developing, managing or working with budget/cost constraints
• Those with an interest in strategic planning and costs management

Outline
Setting the Strategic Direction
• The Strategic Planning Process & Models
• Porter’s 5 Forces model
• Routes to Competitive Advantage
• Price, Cost and Value
• Essential Cost drivers and Potential savings
• Stages to World Class Cost Management
Price Down – Understanding and Managing Price
• Supplier Pricing models
• Krajlic Supply positioning matrix
• Methods of Price analysis
• Strategies and tactics
• Competition and partnership – routes to better pricing
Cost Down – Analysing and Managing Internal and Supplier Costs
• Total Cost of Ownership/Life Cycle Costing
• Methods of Cost analysis
• Major elements of Cost
• What and how important are Supplier overheads
• Sources of cost information
Driving Cost Out – Supplier Engagement and Cost Elimination
• Inventory, warehousing and shipping costs inc. Economic Order Quantity
• Cost-Volume-Profit Analysis and Break-Even Analysis
• Cost engineering
• Fixed and Variable Costs Defined
• Checking Supplier Value
• Profit and risk sharing
• What-if Analysis to build scenarios and Test Sensitivity
Implementing and Measuring Strategic Cost Management
• Barriers to Strategic Cost Management
• Key Performance Metrics
• Cost cutting traps and how to avoid them
• Types of Budgets, their Purpose/Benefits & Problems & Limitations
• Types of Controls - Personnel Action & Results Controls