In today’s competitive world, it is important to control and reduce costs
while also increasing revenue. This course provides an overview of effective
cost containment tools that procurement professionals can use to minimize the
impact of cost and pricing.
Managing costs continues to be a challenge for organizations operating in the
current economic scenario. While increasing revenue is important for an
organization’s profitability, controlling and ultimately reducing costs is
equally important and necessary. When working with external suppliers and
procuring their goods and services, the procurement function controls a major
portion of the costs incurred by a company. Thus, it is important that this
function understands the tools and techniques to manage those costs so that
profitability is maximized. This course provides an overview of these cost
containment tools and related concepts.
After completing this course, you should be able to:
Discuss pricing indices that control cost and pricing fluctuations.
Describe the total cost of ownership (TCO) concept.
Identify quality approaches and process improvement methodologies that affect costs.
Recognize how to apply a breakeven analysis to a procurement decision.