Price Analysis and Total Cost of Ownership Concepts in Procurement

Managing and reducing cost continues to be one of the primary focal points of business and governments today. In many organizations, more than half of the total revenue is spent on goods and services-everything from raw material to overnight mail. Maintaining a competitive position and even survival will depend on the organization's ability to use all of the continuous improvement strategies which have been developed to reduce cost across the entire supply chain for the life of the product or service. Fundamental to developing and implementing these strategies is knowledge of methods of Price Analysis and the concepts of Total Cost of Ownership.

Objectives of the Presentation
Upon completion of this webinar, participants will know:

• Difference between cost and price analysis
• Methods of price analysis
• Competitive bidding issues
• How to use cost estimating relationships
• Historical analysis
• Total cost of ownership models

Why Should you Attend
The organization will benefit by:

• Reduced prices of purchased material, equipment, and services
• The benefits of continuous improvement
• Higher productivity of purchasing and contract personnel
• Greater strategic focus of those involved in supply management

Personal Impact:
Attendees will gain by participation in this program as a result of:

• Increased skill sets in finding savings opportunities
• A greater sense of professionalism
• The ability to analyze supplier's price
• Greater ability to lead continuous improvement programs
• Increased recognition by the organization due to improved performance

Areas Covered

• Strategic cost improvement is a major business issue
• Price justification thru price analysis
• Selection tool and methods of price analysis
• Competitive bidding considerations
• Using cost estimating relationships
• Historical analysis
• Defining total costs of ownership
• What costs make up total cost of ownership
• Cost-based TCO models
• Value-based TCO models
• Steps in developing TCO approach

Who will Benefit
Managers and professionals in:

• Purchasing, procurement, and contracts and
• Those involved in operations, engineering, maintenance, quality, projects, finance, and other company activities that expose them to suppliers/contractors and buying activities for production, maintenance, equipment, indirect, services, and other outside purchased requirements