Building and Negotiating with Cost Breakdowns

Purpose:

Provide the knowledge required to develop, analyze and negotiate with supplier cost breakdown quotations and should-be cost models.

Scope:

This course is intended for purchasing teams that want to increase their cost knowledge while effectively negotiating pricing with suppliers.  It includes tools for analyzing cost breakdowns from supplier quotes including how to build and negotiate with should-be cost models.

Audience:

Buyers, commodity managers, and purchasing managers

Objectives:

After attending this course, attendees will be able to:

• Understand the benefits of cost transparency for buyers and suppliers
• Know shop floor accounting methods that suppliers use to develop quotes
• Understand best practices in the development of detailed cost breakdown formats
• Build effective, commodity specific detailed cost breakdowns
• Systematically analyze detailed cost breakdowns from supplier quotes to identify specific cost reduction opportunities
• Use data from cost breakdowns do build fast, effective should-be cost models.
• Plan a collaborative approach for specific negotiations that will lead to better results and more productive relationships

Download a one page course summary HERE