Price / Cost Analysis: An Approach Leading to Successful Results
Webinar Details $219
- Webinar Length: 100 Minutes
- Guest Speaker: Jim Bergman
- Topic: Purchasing, Taxation and Accounting
- Credit: ATAPU 1.5, CPE 2.0
When organizations discover they need to lower cost, the purchasing group is often tasked with going to suppliers and demanding cost reductions. Now, professionals recognize that bullying their suppliers might provide a onetime, quick fix on the price, but it isn't a solid long-term solution. This presentation will assist procurement personnel to improve their effectiveness in obtaining fair and reasonable prices for goods and services.
Your Benefits of Attending:
- Understand "purchase value" and why that is important.
- Learn the price comparison methods.
- Identify the various costs elements you need to address.
- Gain insight into how to use the cost estimating and analysis tools.
- Understand the role of risk assessment.
Join Jim Bergman as he brings you beyond demanding price reductions and into strategic price / cost analysis.
- Summary - Lowering Cost 00:02:04
- Summary - Supply Management 00:03:45
- Summary - Long-Term Solutions 00:04:05
- Summary - Supply Management and Improving Effectiveness 00:05:17
- Summary - Supply Management and Generating Value 00:12:27
- Today’s Learning Points 00:13:49
- Purchase Value - Why Is It Important? 00:14:36
- Purchase Value - Why Is It Important? (Cont’d) 00:15:06
- Purchase Value - Why Is It Important? (Cont’d) 00:19:14
- Purchase Value - Why Is It Important? (Cont’d) 00:24:19
- Price Comparison Methods 00:25:59
- Price Comparison Methods - Lump Sum Example 00:30:20
- Price Comparison Methods - Collaboration 00:36:09
- Price Comparison Methods - Comparing Deals 00:36:42
- Price Comparison Methods - Example 00:44:27
- Price Comparison Methods - Activity-Based Costing (ABC) Model 00:48:36
- Price Comparison Methods - Activity-Based Costing (ABC) Model (Cont’d) 00:55:00
- Price Comparison Methods - Value-Based Pricing 00:55:10
- Price Comparison Methods - Salesforce Example 01:02:22
- Price Comparison Methods - Pricing Model Example 01:04:11
- Key Cost Elements - Total Cost of Ownership (TCO) 01:06:23
- Key Cost Elements - Total Cost of Ownership (TCO) (Cont’d) 01:09:09
- Key Cost Elements - Hidden Costs of Ownership 01:15:24
- How to Use Cost Estimating/Analysis Tools - The Toolbox 01:19:25
- How to Use Cost Estimating/Analysis Tools - Benchmarking 01:23:20
- How to Use Cost Estimating/Analysis Tools - Example 1 01:25:54
- How to Use Cost Estimating/Analysis Tools - Example 2 01:29:48
- The Role of a Risk Assessment 01:34:03
- The Role of a Risk Assessment - Risk Formula Example 01:34:14
- The Role of a Risk Assessment - Allocation 01:35:18
- The Role of a Risk Assessment - Allocation (Cont’d) 01:36:58
- The Role of a Risk Assessment - The Supplier 01:38:30
- The Role of a Risk Assessment - Allocation of Value - Risk/Value Analysis 01:38:59
- Summary 01:39:01
- Presenter Contact Information 01:39:46
- Presentation Closing 01:41:10
- Activity-Based Costing (ABC) 00:48:35, 00:51:12
- Carbon Tax 00:19:19
- Contract 00:06:24, 00:11:18, 00:14:51, 01:35:49
- Cost 00:01:43, 00:02:56, 00:11:47, 00:39:12, 00:49:44, 01:18:16
- Direct Costs 00:50:39
- Procurement 00:02:25, 00:15:30, 00:17:01
- Purchase Order 00:15:06
- Risk Allocation 00:10:41
- Risk Register 01:32:15
- Stakeholders 00:25:34
- Supplier 00:05:44, 00:06:48, 00:27:17, 00:37:26, 00:52:04, 01:17:58, 01:37:04
- Supply Chain 01:18:00
- Total Cost of Ownership (TCO) 00:15:06, 01:06:27, 01:39:05
- Value-Based Pricing 00:55:18
Activity-Based Costing (ABC) : Activity-based costing is a costing method that identifies activities in an organization and assigns the cost of each activity to all products and services according to the actual consumption by each. Therefore this model assigns more indirect costs into direct costs compared to conventional costing.
Carbon Tax: A carbon tax is a tax levied on the carbon content of fuels, generally in the transport and energy sector. Carbon taxes intend to reduce carbon dioxide emissions by increasing the price of fossil fuels and decreasing the demand for them. Carbon taxes are a form of carbon pricing.
Contract: A written or spoken agreement, especially one concerning employment, sales, or tenancy, that is intended to be enforceable by law.
Cost: The sum of the applicable expenditures and charges directly or indirectly incurred in bringing an article to its existing condition and location
Direct Costs: Direct costs are expenses that directly go into producing goods or providing services, while indirect costs are general business expenses that keep you operating. Examples of direct costs are direct labor, direct materials, commissions, piece-rate wages, and manufacturing supplies.
Procurement: Procurement is the process of finding and agreeing to terms, and acquiring goods, services, or works from an external source, often via a tendering or competitive bidding process. Procurement is used to ensure the buyer receives goods, services, or works at the best possible price when aspects such as quality, quantity, time, and location are compared.
Purchase Order: A legal contract between a buyer and a vendor. It lists the materials or services to be purchased on specified terms and conditions (quantity, price / pricing conditions, delivery date).
Risk Allocation: Risk allocation is the process of identifying risk and determining how and to what extent they should be shared. Most owners understand that risk is an inherent part of the construction process and cannot be eliminated.
Risk Register: A risk register is a document used as a risk management tool and to fulfill regulatory compliance acting as a repository for all risks identified and includes additional information about each risk, e.g. nature of the risk, reference and owner, mitigation measures. It can be displayed as a scatterplot or as a table.
Stakeholders: A stakeholder is a party that has an interest in a company and can either affect or be affected by the business. The primary stakeholders in a typical corporation are its investors, employees, customers and suppliers.
Supplier: A supplier is an entity that supplies goods and services to another organization. A supplier is usually a manufacturer or a distributor. A distributor buys goods from multiple manufacturers and sells them to its customers. Similar Terms. A supplier is also known as a vendor.
Supply Chain: A supply chain is a network between a company and its suppliers to produce and distribute a specific product to the final buyer. The supply chain also represents the steps it takes to get the product or service from its original state to the customer.
Total Cost of Ownership (TCO) : Total cost of ownership is a financial estimate intended to help buyers and owners determine the direct and indirect costs of a product or system. It is a management accounting concept that can be used in full cost accounting or even ecological economics where it includes social costs
Value-Based Pricing: Value-based price is a pricing strategy which sets prices primarily, but not exclusively, according to the perceived or estimated value of a product or service to the customer rather than according to the cost of the product or historical prices.