Cost Modelling
It’s a basic professional responsibility for a buyer to have a structured view of the supplier’s costs, overheads and profit allocation on your business, plus the major commodity drivers.
Having a good model will support:
- Effective negotiation
- Accurate budgeting
- Quantifying and allocating project benefits
- Making go/no-go project decisions
But it’s not easy…
Available data is almost always incomplete or only partly accurate, so some buyers push the cost model to the bottom of their to-do list, preferring to rely on RFPs and negotiations to expose suppliers’ pricing limits.
Our practical, lively and interactive one-day programme with one-to-one follow up gives procurement professionals the confidence and skills to tackle this important task with enthusiasm in their category.
By the end of the programme delegates will:
- Understand the basic principles of a supplier’s P&L and how they allocate costs
- Understand different supplier pricing models & their implications
- Understand the principles of Should-Cost Modelling
- Know where to look for data and how to avoid getting stuck when it’s incomplete
- Know when & how to use cost modelling in negotiation
- Be able to apply cost modelling to value engineering projects & other business decisions
- Come away more inspired, confident and equipped
Our delegates appreciate the way the programme is packed with insights, tips and techniques and how it is delivered in a lively and engaging way.
Here’s what some of them had to say..
“Really helpful! Great learning that now I’ll be able to apply into my category”
“Well delivered training session. Very knowledgeable trainer“
“It was great, with practical applications I can apply right away”
“Listened, answered questions, related to our examples”
“Used examples with real cases – P&L and should-cost models”
“Facilitator is an expert and can explain well”
Click here to contact us