Course Objectives
What skills will you gain?
- Total Cost Theory
- Lifecycle management
- Sourcing Opportunities
- Cost Components, Elements, formulas and Key Drivers of Cost
- Mathematical models for TCO
- Segmenting Spend
- Levers to optimise cost
- Measure TCO across multiple financial periods
- How activities influence TCO
- Concise, Comprehensive and Conclusive cost models
- Bringing stakeholders on board
Product Description
A short course where you will learn to Analyse, Optimise and Measure cost savings by mastering Total Cost Of Ownership (TCO)
Learn how to identify cost savings opportunities beyond price!
- “To a man with a hammer, everything looks like a nail” – Mark Twain
- Too often buyers and suppliers of goods and services become fixated on what appears to be the only tool in their arsenal, namely that of price.
- By analysing the costs of goods and services throughout their lifecycles, using mathematically conclusive models, many “hidden” opportunities arise to substantially reduce costs for all concerned.
- Learn how to analyse, measure, optimise and track Total Costs using proven methods and toolsets
Escape from the race to the bottom
What if a vast set of cost reduction opportunities beyond price were available? By focusing on Total Costs, Buyers can meet their cost reduction targets whilst Sellers can improve margins AND keep customers loyal.
Mastering TCO curriculum
Fundamentals of TCO
In this section, we start you off from the very beginning on concepts of Total Cost of Ownership, such as price, commodities, cost opportunities, life cycle costing and performance indicators.
Analysing TCO
In the second installment, we delve into more detail, learning about segmenting purchasing spend, identifying commodities that contain Total Cost of Ownership opportunities, creating mathematically sound total cost models and analysing cost drivers.
Optimising TCO
In the third installment, we explore how to optimise cost of ownership, by looking at the inter-relationships between cost drivers, opportunities and TCO. We also identify, segment and classify life cycle cost opportunities to understand specific TCO opportunities in more detail. Lastly, we analyse and prioritise opportunities for implementation.
Measuring TCO
In the final Total Cost of Ownership learning installment, we show you how to establish a baseline for measuring Procurement's performance, we look at the legitimacy of price as a measurement tool, we investigate the extent that a cost driver can be controlled and we discuss guidelines for TCO implementation and tracking.
