Course Description
Improve service whilst reducing costs; an impossible task? With effective management and leadership,
world class companies do this every day. "Getting more with less is possible and this seminar shows you how.
In every Supply Chain, the service levels are paralleled with costs to serve. However, changes to costs have an effect on service levels; as what is done and the way it is done, in
turn determines the costs and the service. There is a dynamic
trade
off relationship between the cost, service and productivity levels in the interacting supply chain operations. Doing things better
therefore involves consciously managing the productivity in a holistic way across the supply chain. When this is done, then the achievable outcome is gaining business improvement leadership in the supply chain operations.
Course Objective
This course will teach participants objective practical ways to monitor, evaluate, audit and thus control and manage different aspects of procurement performance and compliance. It also demonstrates a range of management controls and procurement best practice techniques that will uncover and minimize corruption
Who Should
attend?
·
Procurement, Buyers and Purchasing Professionals
·
Stock, Logistics, Warehouse and Distribution Personnel
·
Owners and operators of companies with supply operations
·
Those who need to understand the relationships between cost, service
and productivity in supply operations
Course Outline
Session 1: Understanding Costs
Fixed, variable and marginal costs
Overheads, direct/indirect, prime and marginal costs
Job, batch, contract
and process costing methods
Absorption, marginal and opportunistic pricing
Depreciation of assets
Break-even analysis
Cash flow analysis
Activity based costing
Session 2: Financial aspects
in the Supply Chain
Total cost of ownership/Total acquisition costing/Whole life costs
Investment appraisals
Cost benefit-analysis techniques
Capital expenditure analysis ( Payback, DCF, NPV)
Capital purchase options ( buy or lease or rent)
Pricing options for products/services (open/closed costing)
Session 3: Understanding Productivity
Utilizing resources
Productivity of processes and methods
Performance of outputs
Method study
Work study
Time studies
Session 4: Developing Internal/External Customer Service
Customer requirements
Meeting the requirements
Customer service measurements
Working with the internal customer
Trade offs between costs and service
Trade offs between productivity and service
Session 5: Making Business Improvements
Positively effect key financial drivers
Increasing throughputs
Reducing inventory
Reducing costs and operating expenses
Using improvement models
