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An Intensive 5 Day Training Course

Strategic Cost and Value Management
in the Supply Chain

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We currently have no scheduled session for this Contracts, Purchasing & Procurement Management Training Course. If you are interested in running this course, please contact our Training Department at info@petroknowledge.com


Why Choose this Training Course?

This training course explores the key concepts of Strategic Cost/Price Analysis, Value Analysis, and Total Cost of Ownership that will move today’s organization to the strategic focus needed to achieve world-class performance. This PetroKnowledge course will look at how to deliver price reduction, cost reduction and cost avoidance in modern organisations.

Strategic cost management is vital and increasingly important for all organisations. As global economic conditions place an increased focus on cost reduction to maintain profitability, it is essential that costs are managed in ways that ensure continued performance in strategic areas, and increase value for the organisation and stakeholders overall. This training course leads delegates through development and implementation of carefully crafted strategies for managing costs while improving quality and productivity.

This training course will feature:

  • Setting strategies for world class strategic cost management
  • Maximising value for money
  • Examining costs drivers
  • Improving profitability by controlling total costs
  • Understanding and managing supplier pricing models

Training Objectives click here

What are the Goals?

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

Target Audience click here

Who is this Training Course for?

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

Training Methods click here

How will this Training Course be Presented?

This PetroKnowledge course will utilise a variety of proven highly interactive adult learning techniques to ensure maximum understanding, comprehension and retention of the information presented. The course is highly interactive and will prompt delegates to reflect on their current practices and goals. The tutor will guide and facilitate learning using a wide range of methods including direct input, discussions, case studies and exercises in groups and pairs.

Daily Agenda click here

Day One: Setting the Strategic Direction

Competency Description: The overall strategic direction of the organisation will determine how to control costs and obtain value from the supply chain. World class performance requires both the right direction and excellence in implementation

Key behaviours

  • Strategy development
  • Developing Competitive Advantage
  • Understanding price, cost and value

Topics to be covered

  • 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

Day Two: Price Down – Understanding and Managing Price

Competency Description: Price is a major determinant of costs for the organisation. By understanding and managing the prices charged by suppliers and contractors we can ensure continued Quality at appropriate prices.

Key behaviours

  • Analyzing supplier approaches
  • Segmenting the supply chain
  • Managing Project costs
  • Analysing Prices

Topics to be covered

  • Supplier Pricing models
  • Krajlic Supply positioning matrix
  • Methods of Price analysis
  • Strategies and tactics
  • Competition and partnership – routes to better pricing

Day Three: Cost Down – Analysing and Managing Internal and Supplier Costs

Competency Description: Costs are different to prices, and include both internal and external elements. In order to control costs we need to look at how costs arise (and can be avoided) all along the supply chain.

Key behaviours

  • Calculating whole life costs
  • Comparing supplier costing
  • Estimating supplier overheads
  • Minimising internal costs
  • Analysing Supplier cost breakdowns

Topics to be covered

  • 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

Day Four: Driving Cost out – Supplier Engagement and Cost Elimination

Competency Description: Delivering value for the organisation requires working with suppliers and contractors. There is no “one size fits all” solution, and each key supplier needs to be engaged appropriately.

Key behaviours

  • Understand the importance of fixed and variable costs
  • Analyse the profitability of suppliers
  • Minimise logistics costs
  • Lead by example with H&S
  • Create options for cost elimination

Topics to be covered

  • 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

Day Five: Implementing and Measuring Strategic Cost Management

Competency Description: Costs can only be controlled and value created if we measure the right issues in the right ways. If we use inappropriate measures we may even increase costs in our attempt to control them. A coordinated measurement process is the best way to proceed.

Key behaviours

  • Developing & Implementing a Cost Control Ethos
  • Establish appropriate measurement
  • Avoid common traps
  • Develop personal action plans

Topics to be covered

  • 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

Related Courses click here


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PetroKnowledge Training


Strategic Cost and Value Management
in the Supply Chain


Code Date Venue Fees



Why Choose this Training Course?

This training course explores the key concepts of Strategic Cost/Price Analysis, Value Analysis, and Total Cost of Ownership that will move today’s organization to the strategic focus needed to achieve world-class performance. This PetroKnowledge course will look at how to deliver price reduction, cost reduction and cost avoidance in modern organisations.

Strategic cost management is vital and increasingly important for all organisations. As global economic conditions place an increased focus on cost reduction to maintain profitability, it is essential that costs are managed in ways that ensure continued performance in strategic areas, and increase value for the organisation and stakeholders overall. This training course leads delegates through development and implementation of carefully crafted strategies for managing costs while improving quality and productivity.

This training course will feature:


Training Objectives

What are the Goals?

By the end of this training course, participants will be able to:

Target Audience

Who is this Training Course for?

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:

Training Methods

How will this Training Course be Presented?

This PetroKnowledge course will utilise a variety of proven highly interactive adult learning techniques to ensure maximum understanding, comprehension and retention of the information presented. The course is highly interactive and will prompt delegates to reflect on their current practices and goals. The tutor will guide and facilitate learning using a wide range of methods including direct input, discussions, case studies and exercises in groups and pairs.

Daily Agenda

Day One: Setting the Strategic Direction

Competency Description: The overall strategic direction of the organisation will determine how to control costs and obtain value from the supply chain. World class performance requires both the right direction and excellence in implementation

Key behaviours

Topics to be covered

Day Two: Price Down – Understanding and Managing Price

Competency Description: Price is a major determinant of costs for the organisation. By understanding and managing the prices charged by suppliers and contractors we can ensure continued Quality at appropriate prices.

Key behaviours

Topics to be covered

Day Three: Cost Down – Analysing and Managing Internal and Supplier Costs

Competency Description: Costs are different to prices, and include both internal and external elements. In order to control costs we need to look at how costs arise (and can be avoided) all along the supply chain.

Key behaviours

Topics to be covered

Day Four: Driving Cost out – Supplier Engagement and Cost Elimination

Competency Description: Delivering value for the organisation requires working with suppliers and contractors. There is no “one size fits all” solution, and each key supplier needs to be engaged appropriately.

Key behaviours

Topics to be covered

Day Five: Implementing and Measuring Strategic Cost Management

Competency Description: Costs can only be controlled and value created if we measure the right issues in the right ways. If we use inappropriate measures we may even increase costs in our attempt to control them. A coordinated measurement process is the best way to proceed.

Key behaviours

Topics to be covered

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© 2018. Material published by Petroknowledge shown here is copyrighted.

All rights reserved. Any unauthorized copying, distribution, use, dissemination, downloading, storing (in any medium), transmission, reproduction or reliance in whole or any part of this course outline is prohibited and will constitute an infringement of copyright.


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Institute of Leadership & Management
Institute of Marine Engineering, Science and Technology
 Maintenance & Reliability Professionals
Energy Institute
merican Society for Nondestructive Testing
American Welding Society
Project Management Institute
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