Cost Management Certification
Become a Certified Purchasing Cost Management Professional
The APD Cost Management Certification is a 4-month on-line certification program designed to provide purchasing professionals with the knowledge, skills and take-away tools required to understand and achieve should-be direct material costs.
We provide a fresh look at Purchasing 101 foundations while accelerating individuals to Purchasing 4.0 where data is leveraged with Artificial Intelligence (AI) and machine learning to move to optimal pricing, should-be costs and predictive cost modeling.
Course materials are based upon the processes, techniques, and real-world insights we have gained during our 16 year in-the-industry experience helping clients identify, analyze, and negotiate better pricing with their suppliers.
After completing the program participants have learned how to:
- Conduct best practice sourcing events/construct effective market tests for new and existing business
- Understand manufacturing costs
- Evaluate supplier pricing with or without supplier cost breakdowns
- Build several types of cost models to estimate pricing on new programs and to evaluate supplier quotes
- Choose the right cost methods and models for their commodities
- Conduct effective knowledge-based negotiations to obtain cost transparency and move pricing towards optimal
- Identify cost reduction opportunities with detailed cost breakdowns and cost models
- Respond rapidly to sales and engineering cost inquiries
Standard Rate: $1,250 for the 4-month development program
Each month all participants will complete a module by:
- Attending a live, two-hour group session that delivers/reinforces content and responses to any questions
- Watching 4-5 video podcasts that enables participants to self-pace
- Performing 2-3 exercises that reinforces content and builds should-be skills
- Completing the certification exam for the materials presented in the module
Following is a month-by-month breakdown:
Month 1 – Constructing Effective Market Tests – Understanding Costs & Effective Use of Cost Breakdowns
- Constructing effective market tests
- Understanding supplier costs with manufacturing cost accounting
- Building effective cost breakdowns
- Analyzing quotes with and without supplier provided cost breakdowns
- Introduction to collaborative cost negotiations
Month 2 – Building and Using Price and Cost Models
- Building an effective data warehouse
- Developing and using linear, multivariate and statistical models to estimate price and manufacturing process parameters (machine size, cycle time and scrap)
- Estimating pricing using models on new programs and to evaluating supplier quotes (beginning)
- Segmenting commodities for optimal cost modeling and choosing the most effective cost model for a commodity
Month 3 – Validating Optimal Costs
- Analyzing supplier quotes against your cost models (Advanced), industry cost models and actual open book cost models
- Assessing the effectiveness of a cost model
- Using a cost model and supplier quote history to develop probability pricing
- Negotiating with cost models
- Learning how to use preparation, knowledge, and aspiration to improve negotiation results
Month 4 – Total Acquisition and Relationship Costs
- Calculating the impact of manufacturing inflation and currency on cross border purchases
- Evaluating the total cost of maintaining a supplier relationship
- Including the time value of money for sourcing decisions using Net Present Value
- Exploring cross cultural and team negotiation techniques
Flexible start dates that work with your schedule.