CBD, COST IMPROVEMENTS AND CONTROL
Cost Breakdowns, Cost Improvements and Control.
Let’s explore the following reasons to implement and work on CBDs as a basis for prices.
The first reason is price transparency. An understanding of the main driving forces behind costs (like raw material, production and overhead), as well as the different processes and being able to discuss the prices during sourcing and negotiations is very important.
Second, clear costs are impacted if the parameters of cost drivers change over time. If price update according those parameters is included as a condition in the agreement, non-added-value discussions are avoided using fair standards for updating prices and therefore: WIN-WIN.
Third, CBDs are also important as a source of process information in terms of Risk Management, allowing us to react quickly if production transfer to another supplier is needed due to force majeure destruction of the supplier (any type of natural disaster) or bankruptcy by the current supplier.
Forth, it is the perfect basis to implement cost improvements projects. Analyzing the CBDs to define the main cost forces in combination later with Value Stream Mapping (for example) through the process are very powerful tools to optimize the processes of suppliers and prices.
Fifth, this transparency is also very valuable information for our I+D colleagues, allowing for optimization of cost by new designs and defining proper and realistic targets.
Could you work in Strategic Purchasing without all this?I could not.
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ADVANCE NEGOTIATION
This program is designed for senior purchasers involved in complex, high-stakes negotiations. It develops advanced negotiation skills, strategic thinking, and influence techniques to optimize outcomes in both bilateral and multilateral environments. Participants gain a structured, practical approach and immediately applicable tools to manage complex negotiations more effectively, increase their impact, and achieve superior results.
STRATEGIC PURCHASING
This training program is designed primarily for employees who are new to purchasing, but it is also highly recommended for operational purchasers who lack experience in a strategic approach. The program combines dynamic presentations, real-life examples from my professional experience, and interactive business cases that participants will actively work through. This ensures a practical, engaging, and results-oriented learning experience.
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