Cost Reduction in Procurement

An Intensive 3-day Training Course

Cost Reduction in Procurement

Cost Reduction in Procurement

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We don’t have a scheduled session for this course at the moment. For more information and to enquire about future sessions, please feel free to reach out to our Training Department ([email protected])

Why Choose this Training Course?

This training course has been specifically designed to develop a deep understanding of how to apply viable cost reductions in procurement. This training course will look at how you should take a pragmatic and holistic view to develop a sustainable and viable strategy that concentrates on supplier development, sourcing strategies, category management, win-win negotiation, collaboration and achieving the best price for the best value throughout the whole supply chain; without diminishing the level of service or quality.

On this training course you will learn that strategic direction must not be confused with just “cost cutting” activities that will see the organization apply a reduction in prices of product/service prices from their vendors and contractors. You will learn that tactical plans often concentrate only on price management, whereas more strategic and transformational planning impacts the underlying cost drivers and also highlights the areas of waste and inefficiency.

By attending this training course you will think long-term and learn how to work with all the supply chain to implement a program of cost containment initiatives that examines the efficiency of the supply chain, analyzing wasteful measures and looking at the whole life costing by using relevant spend analysis and Total Cost of Ownership techniques.

This Cost Reduction in Procurement training course will feature:

  • Determining the Procurement Strategy
  • Conducting Spend Analysis
  • Implementing Whole Life Costing
  • Category Management
  • Sourcing Strategy

What are the Goals?

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

  • Understand the actual requirements of why a service or product is being procured
  • Understand the rationale required for a cost reduction strategy
  • Understand the need for change to more strategic and innovative approaches
  • Implement strategies to work with the supply chain to reduce costs in a pragmatic way
  • Learn how to negotiate and develop a win-win situation
  • Conduct spend analysis on all categories
  • Implement long term saving initiatives

Who is this Training Course for?

This training course is designed for procurement professionals who need to understand the difference between cost cutting exercises and long term cost reductions in the supply chain.

The course is suitable to a wide range of professionals but will greatly benefit:

  • Procurement Officers
  • Contracting Officers
  • Supply Chain Professionals
  • Program managers
  • Those who are involved in the planning, evaluation, preparation and management of purchasing, tenders, contracts that cover the acquisition of materials, equipment and services

How will this Training Course be Presented?

This dynamic three day training course is designed to explore a wide range of cost reduction approaches, reflecting the shifts towards strategically focused sources of value from external supply contracts. This training course will utilise a variety of proven adult learning techniques to ensure maximum understanding, comprehension and retention of the information presented.

This training course will also combine variety of instructional methods including lecture by a world-class subject matter expert in procurement and supply chain strategy. This is a highly interactive and competitive training course where the participants will work and compete in team exercises, group discussions covering current practices and their relationship to the implementation of new concepts.

Daily Agenda

Day One: Determining the Needs of the Organization to Develop a Sustainable Cost Reduction Program
Competency Description: As a procurement professional you need to understand the need to introduce and deliver a cost reduction program and understand the impact it will have on your organization and your suppliers

Key behaviours:

  • Uses a variety of questioning techniques to clarify
  • Able to influence and persuade through a deep understanding
  • Uses communication to control and be assertive as needed
  • Being aware of the various risks involved
  • Understand the concept of cost reduction vs cost cutting
Daily Topics:
  • Defining the Procurement Strategy
  • Understand the real needs of the organization
  • Analysing and managing key stakeholders
  • Determine the risks involved
  • Conducting an internal spend analysis
  • Identification of a long term cost reduction strategy
Day Two: Supply Management Tools and Techniques to Determine Cost Reduction
Competency Description: Data and spend analysis is a fundamental method to establish methods to develop systems and processes to deliver value throughout the whole life cycle of a supply contract.

Key behaviours:

  • Understand the importance of facts and figures
  • Using best practice tools and techniques
  • Developing practical processes
  • Taking an holistic approach to vendor management
  • Understand the different approaches to take when analysing data
Daily Topics:
  • Procurement analysis tools and techniques
  • Strategic cost management
  • Principles of cost and value management
  • Understanding the principles Total Cost of Ownership
  • Benchmarking and developing ‘should cost’
  • Cost modelling / bottom up costing
Day Three: Supplier Development and Collaboration
Competency Description: Understanding the supply market and knowing how to apply methods to deliver value for money throughout the life cycle of a supply contract is fundamentalKey behaviours:
  • Decision making process
  • Developing sustainable strategies
  • Implementing critical performance indicators
  • Influence though win-win negotiation
  • Change control
  • Dealing with non-compliance
Daily Topics:
  • Creating a vision that is viable and sustainable
  • Introducing clear and measurable cost reduction targets
  • Developing inventive programmes with key suppliers
  • Negotiation strategies for a win-win relationship
  • Renegotiating and changing existing supply contracts
  • Monitoring performance and rewarding excellence

Certificate

  • On successful completion of this Training Course / Online Training Course, a PetroKnowledge Certificate / E-Certificate will be awarded to the delegates.

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Frequently Asked Questions

Why PetroKnowledge?

PetroKnowledge is a globally recognized provider of training courses for oil and gas professionals, offering a wide range of specialized training courses designed to enhance knowledge, skills, and expertise in the energy sector. With courses tailored to meet the evolving demands of the oil and gas industry, PetroKnowledge helps professionals stay up-to-date with industry standards, technological advancements, and best practices.

Who are these training courses designed for?

Our courses are specifically developed for professionals in the oil and gas industry, including engineers, technical staff, managers, and other specialists looking to advance their careers. Whether you’re a seasoned expert or new to the sector, our training for oil and gas professionals is suited to individuals at all stages of their professional journey.

Are the courses delivered online or in person?

PetroKnowledge offers flexible learning solutions with both online courses and in-person training options. Online courses for oil and gas professionals provide the flexibility to learn from anywhere, while in-person courses offer a hands-on, interactive learning environment. Each training course page provides detailed information on the delivery format, allowing you to choose the option that best meets your learning style and schedule

Can I get a customized training course for my team?

Yes, PetroKnowledge offers customized in-house training solutions for organizations looking to upskill their teams. We work closely with companies to design bespoke training courses for oil and gas professionals that address specific challenges and objectives. Whether you need on-site training or online solutions, we can tailor the training courses to suit your organization’s needs.

Are there any prerequisites for attending a course?

Certain advanced training courses for oil and gas professionals may require prior experience or technical knowledge. These prerequisites ensure that participants can fully benefit from the course content. We recommend reviewing the course description on the relevant page to determine if any prerequisites apply to your selected course.

How can I enroll in a course?

Enrolling in one of our training courses for oil and gas professionals is simple and convenient. Navigate to the specific course page, click “Enroll Now,” and complete the registration form. You will receive a confirmation email with further details on how to proceed.

You may also get in touch with our Registration Team on
+971 50 981 7386 | +971 2 557 7389 or send an email to [email protected]

When should I expect to receive confirmation of registration?

Upon successful registration online, enrolment on the respective training course will be confirmed by Registration Team by e-mail along with the invoice and joining instruction.

Will I receive a certificate after completing the course?

Yes, upon successful completion of our courses for professionals in the oil and gas industry, you will receive an industry-recognized certificate from PetroKnowledge. This certification is designed to validate your skills and knowledge and can significantly enhance your professional credentials, boosting your career prospects in the competitive oil and gas sector.

When and how do I arrange payments?

We offer two convenient payment options:

  • Bank Transfer – You can make payment via bank transfer. Once your registration is confirmed, you will receive an invoice with the banking details for the transfer. We would require you to supply a swift copy for us to confirm receipt of funds.
  • Payment Link – Alternatively, we provide a secure payment link that you can use to complete your payment after your registration has been confirmed.

What is the refund or cancellation policy?

Our refund and cancellation policy varies depending on the course and circumstances. Generally, cancellations made at least 21 days before the training are eligible for a refund, less any administrative fees. If you have any specific inquiries about the cancellation or refund, don’t hesitate to contact our support team, who can assist with your booking and cancellation queries.

Is there a discount for more than one registrant/course?

For corporate fees and group registration, please send your query to [email protected].

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