Cost Analysis for Non-Financial Supply Chain Professionals
- 6 Sep 2017 – 6 Sep 2017, Intake: 2
- 24 Nov 2017 – 24 Nov 2017, Intake: 3
Businesses are now facing intense market conditions and challenges, to be cost effective and profitable. Henceforth, the spotlight would focus on operations and supply chain to deliver cost effective solutions.
TCO (total cost of ownership) is the fundamental concept in understanding the cost breakdown and analysis of a business’s total expenditure, with Big Data and IoT applications to facilitate a clear tracking of the spend analysis.
This workshop would provide an overview of the TCO concept, and an introduction to performing a cost breakdown analysis to obtain a better understanding of a business’s cost structure as well as the financial impact on profitability.
- 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
1. Definition and interpretation of cost components
- For operations and non-operations requirements
- Overview of the TCO concept
2. 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
3. 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
- E.g. category of transportation, breakdown to sub-categories of road, sea and air freight for detailed analysis, yet allow consolidation at transport category level.
4. 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)
|PIC Grant||Eligible Companies to claim directly from IRAS.||N.A.|
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 professional in strategic management and MBCI (Market, Business & Competitive Intelligence) for over 20 years, spanning across several industries such as electronics, automotive, telecommunication, oil & gas industries. He has led many cross functional projects which produced valuable insights and critical information to drive strategic decisions.
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.