Understand the Cost Impact on Your Business
- 31 Aug 2018 – 31 Aug 2018, Intake: 2
Businesses are now facing volatile market conditions and challenges, to be cost effective and profitable. Henceforth, a business needs to understand its cost expenditures and the impact on its operations.
Procurement with the Kraljic model is the fundamental concept in understanding the spend analysis with a supply chain management perspective – breakdown and analysis of a business’ cost expenditure for its operations.
An overview of the TCO concept with an understanding of cost breakdown analysis to obtain a better understanding of a business’s cost structure as well as the impact on profitability.
- Introduction to the business model canvas – an overview of the business’ operations.
- Overview of the TCO concept – identify the cost components of a business.
- Cost breakdown analysis – understand the details of the cost components, and analyse the cost structure of the business operations.
- An understanding of spend and cost analysis applications, from the supply chain management perspective using the Kraljic model.
- Kraljic model – category spend analysis for managing a business’s cost
- Category spend analysis for supplier management strategy
- Leaders of functional areas who need data analytics to enhance the effectiveness of the business decision making process – analytical tools providing insights for timely and informed decisions. E.g. finance, supply chain, procurement and purchasing.
- Leaders and professionals who need to develop business capabilities to enhance the effectiveness of an organization’s functional business operations – timely communication, easy access and availability of information for decision making.
- Applicable across a diversity of target markets and industries – retail, manufacturing, F&B, aerospace, healthcare, insurance and education.
- Definition and interpretation of cost components
- For operations and non-operations requirements
- Overview of the TCO concept
- Activity Based Costing
- Detailed cost breakdown analysis – looking at operation requirements
- Case study – identify and review major cost components in transportation and WMS, with cost breakdown in Excel.
- Cost structure analysis – identify cost components
- Spend analysis – define and categorize cost components using the Kraljic model for procurement and category management.
- Spend analysis – analysis using Kraljic model for category and supplier management, to better manage a business’s spending and cost.
- Eg. category of transportation, breakdown to sub-categories of road, sea and air freight for detailed analysis, yet allow consolidation at transport category level.
- Introduction to TCO – total cost of ownership analysis with cost breakdown for cost items including freight (i.e. transport and delivery), inventory, scrap and wastage.
- Example – teardown costing for Apple smartphone
(payable to TLA)
Payment will only be required after the course is confirmed.
Payment mode (retail payments facilities are not available) :
Overseas – Telegraphic transfer
Local – Cheque or bank transfer
1 day : 9 am to 6 pm
Peter Loh is an experienced creative strategist focused on MBCI (Market, Business & Competitive Intelligence) for over 20 years, spanning across industries such as electronics, automotive, telecommunication, oil & gas industries. With his immense industry experience, he envisions the market potential for IoT and Big Data applications to proliferate across many industries toward 2020.
Peter is now an Adjunct faculty member at Singapore Institute of Technology, having developed the Organization & Management module, and introducing the McKinsey 7-S concept as an analytical tool for organizational effectiveness.
A Certificate of Attendance will be awarded upon successful completion of the course with 75% attendance.