Procurement Cost Management Strategic Approaches in Improving Cost Reduction & Cost Avoidance

20-21 Mar, 2023, Pullman Kuala Lumpur Bangsar

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MANOHARAN MURUGESON has more than 21 years of practical work experience in contracts
administration, supplier management, procurement, project management, supply chain and
logistics, etc. He specializes in training, facilitation and consulting to both the public and private
sector in areas like Procurement Efficiencies including addressing issues of contracts administration, fraud, cost management and product life cycle management, Warehouse Management, Operations Management, Total Cost Management, Supply Chain Management, Total Logistics management, Stock Taking and Auditing.

 

His landmark consulting experience was designing of materials part numbering and coding systems, preparation of standards, policies and procedures for a large rail network. He was also involved as a consultant for the development of an automated business solution for a wholesale/retail stationery business with offshore branches where he was instrumental in business process analysis, process improvement, project management and eventual successful completion and commission of the system.

 

Mr. Haaran’s sample of illustrious clients list for training include Shell, UMW Toyota Motor, Celcom, Samsung, Proton, Colgate-Palmolive, Eon Finance, Philips, Hicom-Yamaha, Malaysian Oxygen, NEC, Petronas, General Electrics, Gamuda, Johnson & Johnson Medical, JVC, Kontena Nasional, Glaxo Wellcome, Hitachi, Hong Leong Lurssen Shipyard, National Heart Institute (IJN), Kenwood, Macfood Service, Nestle, Mattel, Matsushita Industrial Corporation, Maybank, Minolta Precision Engineering, MISC, Perwaja Steel, Seagate, Canon, BASF and UPS, Petronas Carigali, Sidel, Western Digital,
Perodua, Sharp, Panasonic.

 

He holds Masters in Business Administration (MBA) USA.

Venue Details

Pullman Kuala Lumpur Bangsar
No 1 Jalan Pantai Jaya, Tower 3, 59200 KUALA LUMPUR,
Phone : 0 3-2298 1888
Fax : 0 3-2298 1999

https://all.accor.com/hotel /7962/index.en.shtml

Contact us

Juliany,
03 2283 6109
juliany@ipa.com.my

Phoebe,
03 2283 6100
phoebe@ipa.com.my 

FOR CUSTOMISED IN-HOUSE TRAINING
Jane,
03 2283 6101
Jane@ipa.com.my

ADDRESS 
A-28-5, 28th Floor, Menara UOA Bangsar, 
No.5, Jalan Bangsar Utama 1, 
59000 Kuala Lumpur
www.ipa.com.my

FOCUSING ON
  • Module 1 – Understanding the Contribution of Procurement to the Organization
  • Module 2 – KPI’s and Cost Savings
  • Module 3 – Cost Reduction and Cost Avoidance
  • Module 4 – TCO & PLCC 
  • Module 5 – Cost Saving Framework
  • Module 6 – Supplier Cost Elements
  • Module 7 – Less Understood Costs
  • Module 8 – Other Cost Saving Approaches
OVERVIEW

Suppliers are integral to many business entities. They perform a vital role in ensuring that materials are made available at the time and place where they are needed, in the right quality and specifications, and in reasonable quantities where possible. All these are done within manageable costs to all parties involved in the transactions.

While suppliers can form part of a cooperative and collaborative approach to procurement, they are sometimes mired by internal inefficiencies and target profit margins. Similarly, the buying organization too may work within an outdated framework that is not efficient. This may not bode well for both the buying organization and the selling organization.

A strategic approach to procurement with a win-win solution looks at cost as a responsibility of all parties involved. Identifying cost drivers in the buyer-seller relationships, reducing non-value adding activities, eliminating arbitrary costing and seeking value adding activities would result in a stronger and longer-term business relationships.

AFTER ATTENDING THIS COURSE YOU WILL RETURN TO YOUR JOB…
  1. Understanding How Procurement Contributes To Cost Savings Of The Organization
  2. Understanding How KPI Helps In Cost Savings Measures – Cost Reduction And Cost Avoidance
  3. Understanding What Is Total Cost Of Ownership And Product Life Cycle Costing?
  4. Understanding Supplier Pricing Mechanisms
  5. Understanding What Is Cost Saving Framework And How It Could Help
WHO SHOULD ATTEND
  • Managers, Executives, Officers, Professionals from
  • Purchasing/Procurement
  • Distribution & Supply Chain
  • Costing & Planning
  • Materials Planning & Control
  • Logistics
  • Vendor Development
  • Suppliers
  • Finance
  • Business Development
  • Merchandizing
  • Sourcing
  • Operations
  • Buyers
METHODOLOGY
Interactive Lectures, Exercises, Cases And Class Participation 
DAY 1
9:00

MODULE 1 – UNDERSTANDING THE CONTRIBUTION OF PROCUREMENT TO THE ORGANIZATION

  • The Procurement Function – Roles And Responsibilities
  • Why Is Procurement Important?
  • How Could Procurement Contribute To Cost Savings?


 

MODULE 2 – KPI’S AND COST SAVINGS

  • Approaches To Cost Savings – Strategic And Operational
  • Strategic Contribution Of Procurement
  • Importance Of Procurement KPI’s 

 

10.45

MODULE 3 – COST REDUCTION AND COST AVOIDANCE

  • What Is Cost Reduction?
  • What Is Cost Avoidance?
  • Impact On CapEx And OpEX
  • Cost Savings In CapEx And OpEx
  • Calculating Cost Savings
  • Reducing Maverick Buying

 

1:00 Lunch
2:00

EXERCISES

 

MODULE 4 – TCO & PLCC 

  • Cost Drivers
  • Price And Cost Analysis
  • Total Cost Of Ownership
  • Product Life Cycle Costing

 

5:00 End of Day 1
DAY 2
9:00

MODULE 5 – COST SAVING FRAMEWORK

  • Models Used
  • Focus Areas Of Models
  • Tracking Procurement Cost Savings
  • Procurement Solutions Projects


 

MODULE 6 – SUPPLIER COST ELEMENTS

  • Major Cost Elements And Key Factors
  • Supplier Pricing Models
  • Determine The “Should-Cost” And Target Pricing
  • Understanding Break-Even Analysis

 

10.45

MODULE 7 – LESS UNDERSTOOD COSTS

  • Inventory Decision Costs
  • Holding And Ordering Costs
  • Replenishment Lead Time Effects On Inventory Ordering
  • Cost Of Economic Order Quantity Purchases
  • Order Point Systems And Constraints
  • Understanding Costs Associated With Service Levels & Safety Stock

 

1:00 Lunch
2:00

EXERCISES

 

MODULE 8 – OTHER COST SAVING APPROACHES

  • Quick Wins And Hard To Win
  • Resisting Price Increase From Suppliers
  • ABC Analysis – Tail Spend
  • Indirect And MRO Spend

 

5:00 End of Course