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Cost Modelling in Procurement

Cost Modelling in Procurement

Delivery

Face-to-face or virtual workshop

Duration

1/2 day

Enhance your Expertise in Cost Modelling for Procurement

This course will provide you with a fundamental understanding of cost modelling in procurement, an essential skill for public sector procurement professionals. Also referred to as should-cost analysis, this process involves the analysis and estimation of costs associated with procuring goods or services.

This course covers various cost modelling techniques, tools, and best practices used in procurement to effectively analysis costs and make informed procurement decisions. You will learn how to develop accurate cost models that can be used in supplier evaluations to optimise procurement outcomes. This course provides procurement professionals with the necessary knowledge and skills to develop, validate, and utilise cost models effectively in procurement decision-making processes. Through interactive discussions, case studies, and practical exercises, you will gain a thorough grasp of cost modelling techniques and best practices.

Key Content

Varied techniques and tools for comprehensive cost analysis in procurement

Accurate cost models for supplier assessments, leading to improved procurement decisions

Professionals skills to create, validate, and apply cost models effectively

Overview of the significance of cost models in shaping procurement outcomes

Engagement in discussions and exercises to grasp cost modelling techniques

Assessing and interpreting cost data for strategic procurement choices

Course Format

Duration

1/2 day

Delivery

Face-to-face or virtual workshop

Content is delivered through a mix of work-based activities, including lecture-style presentations, group discussions, interactive workshops and case studies.

Understand the fundamentals of cost modelling in procurement, including key concepts, terminology, and approaches

Analyse different types of costs in procurement, such as direct costs, indirect costs, variable costs, fixed costs, and sunk costs

Learn various cost modelling techniques, such as activity-based costing, total cost of ownership (TCO), and whole-of-life (WOL) should-cost analysis, and price analysis

Develop effective cost models to estimate and analyse costs associated with procurement activities

Understand how to use cost models in negotiations with suppliers to achieve favourable pricing and contract terms within a framework of probity

Learn best practices for validating and verifying cost models to ensure accuracy and reliability

Understand how to incorporate cost modelling into procurement decision-making processes, including supplier evaluations, make-or-buy decisions, and cost optimisation strategies

Gain insights into cost drivers, cost structures, and cost reduction strategies in procurement

Learn how to effectively communicate cost modelling results to stakeholders and senior management

Benefits for you

Gain a fundamental understanding of cost modelling in procurement, equipping you with a crucial skill sought after in the public sector

Master the principles and methodologies of should-cost analysis, enabling you to estimate and analyse the costs involved in procuring goods or services effectively

Acquire the ability to identify and analyse cost drivers, providing you with valuable insights into the factors influencing procurement costs

Develop proficiency in utilising various cost estimation techniques and tools to make accurate projections in procurement activities

Benefits for your organisation

Strengthen your organisation's procurement capabilities with staff equipped with a fundamental understanding of cost modelling

Improved cost estimation through should-cost analysis leads to more accurate budgeting and cost projections for procurement activities

Identify cost drivers effectively to optimise resource allocation and achieve cost savings in the procurement process

Negotiate more competitive and cost-effective contracts by understanding supplier cost structures and making informed decisions

Any Questions?

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