Cost Analysis in Purchasing
Product ID : RBEN-0002
Level : Intermediate
Duration : 60 Minutes
Robi Bendorf, CPSM, MCIPS, C.P.M., M.ED, has over 40 years of purchasing and sales experience, involving domestic and international activities for a broad range of manufacturing and service businesses. As President of Bendorf & Associates, he has extensive experience in consulting & training in purchasing, contracts, re-engineering the supply management process, the management of procurement functions, global sourcing of materials and components, reducing the cost of purchased materials and services, and negotiation of complex transactions and contracts.
He has given presentations on numerous purchasing and contract management topics for the "Institute for Supply Management (ISM)", major universities, and numerous in-house seminars for industrial & services clients in the US and over 200 public seminars internationally. He is the contributor of articles published in Purchasing Today and Inside Supply Management. Robi was selected as ISM's National Person of the Year in both Global Resources and Education/Learning.
Robi has an undergraduate degree from the University of Texas, and a Masters Degree from Penn State University.
Managing and reducing cost continues to be one of the primary focal points of business and governments today. In many organizations, more than half of the total revenue is spent on goods and services—everything from raw material to overnight mail.
Maintaining a competitive position and even survival will depend on the organization's ability to use all of the continuous improvement strategies which have been developed to reduce cost across the entire supply chain for the life of the product or service. Fundamental to developing and implementing these strategies is knowledge of Cost Analysis.
Upon completion of this seminar, participants will know:
- The Difference Between Price And Cost Analysis
- How to win in negotiations by understanding the elements of Cost
- The criteria for determining a reasonable profit
- Development Of "Should Cost"
- Discussion of Variable or Direct Cost
- Determination of Direct Material and Labor
- Discussion of Fixed or Indirect Costs
- Apply Variable & Fixed Cost to Quantity
- Common Primary Indirect Cost Pools and Typical Costs Found in Each
- Indirect Cost Rate Formula
- Fair and Reasonable Profit
Who Should Attend
Managers and professionals in:
- Purchasing, Procurement, Contracts and
- Those involved in operations, engineering, maintenance, quality, projects, finance, and other company activities that expose them to suppliers/contractors and buying activities for production, maintenance, equipment, indirect, services, and other outside purchased requirements