On Demand Webinar
Webinar Details $219
- Webinar Length: 100 Minutes
- Guest Speaker: Jim Bergman
- Topic: Purchasing, Taxation and Accounting
- Credit: ATAPU 1.5, CPE 2.0
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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.
- Introduction
- Summary - Lowering Cost 00:02:17
- Summary - Supply Management 00:04:26
- Summary - Long-Term Solutions 00:008:03
- Summary - Supply Management and Improving Effectiveness 00:10:34
- Summary - Supply Management and Generating Value 00:13:07
- Today’s Learning Points 00:15:09
- Purchase Value - Why Is It Important? 00:16:46
- Purchase Value - Why Is It Important? (Cont’d) 00:17:16
- Purchase Value - Why Is It Important? (Cont’d) 00:25:03
- Purchase Value - Why Is It Important? (Cont’d) 00:29:34
- Price Comparison Methods 00:32:33
- Price Comparison Methods - Lump Sum Example 00:35:50
- Price Comparison Methods - Collaboration 00:42:48
- Price Comparison Methods - Comparing Deals 00:46:06
- Price Comparison Methods - Example 00:52:56
- Price Comparison Methods - Activity-Based Costing (ABC) Model 00:55:37
- Price Comparison Methods - Activity-Based Costing (ABC) Model (Cont’d) 00:58:36
- Price Comparison Methods - Value-Based Pricing 01:00:33
- Price Comparison Methods - Salesforce Example 01:05:35
- Price Comparison Methods - Pricing Model Example 01:08:14
- Key Cost Elements - Total Cost of Ownership (TCO) 01:10:22
- Key Cost Elements - Total Cost of Ownership (TCO) (Cont’d) 01:14:29
- Key Cost Elements - Hidden Costs of Ownership 01:18:17
- How to Use Cost Estimating/Analysis Tools - The Toolbox 01:19:50
- How to Use Cost Estimating/Analysis Tools - Benchmarking 01:23:50
- How to Use Cost Estimating/Analysis Tools - Example 1 01:27:29
- How to Use Cost Estimating/Analysis Tools - Example 2 01:29:52
- The Role of a Risk Assessment 01:32:30
- The Role of a Risk Assessment - Risk Formula Example 01:35:59
- The Role of a Risk Assessment - Allocation 01:38:06
- The Role of a Risk Assessment - Allocation (Cont’d) 01:41:00
- The Role of a Risk Assessment - The Supplier 01:41:17
- The Role of a Risk Assessment - Allocation of Value - Risk/Value Analysis 01:48:17
- Summary 01:43:13
- Presenter Contact Information 01:44:56
- Presentation Closing 01:45:36
- Activity-Based Costing (ABC) 00:56:36
- Asset 00:17:13
- Benchmarking 01:23:59
- Carbon Tax 00:25:46
- Contract 00:16:59, 01:38:31
- Cost 00:02:23, 00:03:28, 00:08:24, 00:15:46, 00:24:39, 00:26:58, 00:44:44, 00:58:16, 01:12:01, 01:23:05, 01:27:39
- Cost Analysis 01:20:16, 01:34:16, 01:43:36
- Independent Contractor 01:33:27, 01:39:42
- Price Analysis 01:20:16, 01:43:36
- Procurement 00:05:20
- Purchase Order 00:16:57
- Purchase Value 00:15:25, 00:16:46, 00:32:20
- Risk Allocation 01:38:11
- Risk Analysis 01:34:09
- Risk Register 01:32:43, 01:36:40
- Stakeholders 00:05:03, 00:07:18, 00:11:52, 00:13:32, 00:28:41
- Supplier 00:06:11, 00:07:21, 00:08:30, 00:11:41, 00:42:47, 00:47:19, 01:14:27, 01:32:27, 01:41:21
- Supply Chain Management 00:04:36, 00:07:12, 00:10:39, 00:11:28, 00:13:40
- Total Cost of Ownership (TCO) 00:17:06, 00:17:37, 01:10:32, 01:18:29, 01:43:16
- Value-Based Pricing 01:00:37
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.
Asset: Property owned by a person or company, regarded as having value and available to meet debts, commitments or legacies.
Benchmarking: A process of comparing the performance of a procurement function with that of its best competitor or the best organization in its industry.
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
Cost Analysis: The primary reason for conducting cost analysis is generally to determine the true (full) costs of each of the programs under analysis (services and/or products). You can then utilize this knowledge to: Identify and prioritize cost-saving opportunities.
Independent Contractor: An independent contractor is a person or entity contracted to perform work or provide services to another entity as a non-employee. As a result, independent contractors must pay their own Social Security and Medicare taxes. - Investopedia (https://www.investopedia.com/)
Price Analysis: Price Analysis is the process of deciding if the asking price for a product or service is fair and reasonable, without examining the specific cost and profit calculations the vendor used in arriving at the price. It is basically a process of comparing the price with known indicators of reasonableness.
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).
Purchase Value: Purchase Value means the amount of cash and fair market value of property which would be received by the holder of the membership interest to be sold hereunder if the Company sold its business and assets for cash at a purchase price equal to their fair market value as of the date of determination of the Purchase Value, and all remaining assets of the Company were distributed to the Members in accordance with this Agreement.
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 Analysis: Risk analysis is a technique used to identify and assess factors that may jeopardize the success of a project or achieving a goal.
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 Management: In commerce, supply chain management, the management of the flow of goods and services, involves the movement and storage of raw materials, of work-in-process inventory, and of finished goods as well as end to end order fulfillment from point of origin to point of consumption.
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.
