Cost Reduction in Procurement

An Intensive 3-day Training Course

Cost Reduction in Procurement

Cost Reduction in Procurement

Are the scheduled dates matching with your needs?

We provide a wider range of training options. Tailored and customized, we can deliver your organization’s training needs anytime, anywhere.

In-House Solutions ›

We currently have no scheduled session for this 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 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.

In Association With

GLOMACS Training

Our collaboration with GLOMACS aims to provide the best training services and benefits for our valued clients

Other Training Courses You Might Be Interested In

Frequently Asked Questions

  • To register online through our website, please click “Enroll Now” on the course page, complete and submit the form. A confirmation e-mail and instructions will be sent to the participant’s e-mail.
  • You may also get in touch with our Registration Team on
    +971 50 981 7386 | +971 2 557 7389 or send an email to reg@petroknowledge.com

  • Payments can be made in USD or UAE local currency AED (Arab Emirates Dirhams) either by Bank Transfer or by Credit Card. Our Bank Account details will be provided on the invoice.
  • Course fees are payable upon booking unless a valid, authorized Purchase Order is provided and accepted.
  • Invoices will be sent via email/courier to the ID/name and address provided.
  • The course fee shall be settled prior to course start date. Corporate payments with existing payment policy shall be relayed to us in advance.

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.

For corporate fees and group registration, please send your query to info@petroknowledge.com.

Follow Us:

Subscribe To Our Newsletter

    PetroKnowledge
    Chat with an assistant

    Mikee
    Hello there
    how can I assist you?
    1:40
    ×