| Benefit Of Attending |
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| Upon completion of this seminar, participants will know: |
- Explore 20 cost reduction methods and gain substantial savings
- Learn proper Cost Reduction Reporting Procedures
- Streamline and improve your supplier performance
- Master data mining and learn the art of strategic plans
- Accurately monitor your cost improvements
- Learn how to get control of your time with the all important ABC analysis
- Develop your skill in handling Purchase Price Indexes
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| Course outline |
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| Purchasing Savings Impact on the Bottom line |
| See that purchasing savings go right to the bottom line whereas a small percentage of sales hit the bottom line |
- The need for change
- Purchasing savings model
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| Essential Issues in Cost Reduction Initiatives |
- A check list resulting for experiences
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| Cost Reduction Reporting Procedure |
| A formal reporting process is essential for you to have a successful initiative and to motivate people to search for savings |
- Difference between cost reduction and avoidance
- Types of reduction
- Sample reporting form
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| Continuous Improvement Skill Sets |
| This will give you an essential skill set and training |
- A comprehensive list of crucial skill sets
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| Data Mining |
| The 1st critical step for you to perform world class purchasing is to have a spend profile |
- Sources of data to develop the spend profile
- Developing the spend profile
- Commodity codes
- Developing the ABC analysis.
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| Opportunity Assessment |
| After the spend profile is developed, you need to show how to analyze data. Included are some essential tools used by very few purchasers |
- Analyzing the spend profile
- A demonstration of how to use Pivot Tables, Filters in Excel
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| Develop Opportunity Hypotheses |
| This will enable you to identify specific opportunities and how to rank them |
- User group brainstorming sessions
- The Improvement Opportunity form
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| Purchase Price Index |
| This will show you how to develop a KPI to show positive savings performance even when prices are increasing |
- Developing company purchase price index and comparing to external Indexes
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| Cost Reduction Methods |
| This will clarify typical savings methods and enable you to implement improved performance |
- Benchmarking
- Early Purchasing
- Supplier Involvement
- Supplier reduction
- Advancing supplier relationships
- Supplier qualification methods
- Supplier performance measurement
- Strategic alliances
- Understanding of supply marketplace
- Developing commodity plans
- Resisting price increases
- Reengineering processes
- Negotiations
- Inventory reduction
- Improving terms & conditions
- Long term agreements
- Information Systems
- Value analysis
- Reducing Waste in the supply chain
- Defining Price/Cost Analysis
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