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Mastering Your Indirect and Service Spend Categories: Leveraging Applied Best Practices to Contain Costs

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Executive Education > Courses > Mastering Your Indirect and Service Spend Categories: Leveraging Applied Best Practices to Contain Costs

Mastering Your Indirect and Service Spend Categories: Leveraging Applied Best Practices to Contain Costs

Day 1

Orientation and introductions


Cost and price analysis

  • Looking at the supplier: the financial review
  • Common analytical tools
  • Ratio analysis
  • Options for cost reduction
  • The concept of “value”
  • Pricing information: how to get it, what to do with it
  • Case analysis and applications

Purchase of capital assets

  • Budget considerations
  • Cost characteristics
  • Decision-making process
  • Service agreements
  • Buy vs. lease
  • Buying used equipment
  • When, where and how to buy

Purchase of services

  • Characteristics of service vs. material purchases
  • Importance of a Statement of Work (S.O.W.)
  • Defining requirements
  • Defining quality, delivery and price terms
  • Supplier Quality System and Assurance Analysis (certification, ISO 9000, CPK analysis, etc.)

Outsourcing and make-vs.-buy

  • Basis for an outsourcing agreement
  • Characteristics of a successful program
  • Disadvantages of outsourcing
  • Balancing cost and value
  • The systematic steps of value analysis

Day 2

Analysis of the supply management system: how to ensure effectiveness and efficiency

  • The necessity for change in supply management systems
  • Steps in assessing the purchasing processes
  • Determining the impact of volume, complexity, redundancy
  • Improvements through technology
  • Application of industry “best practices”

Purchasing: cost center or profit center?

  • Purchasing’s value-adding activities
  • How to identify non-value adding activity

Measuring purchasing’s performance

  • Focus on process effectiveness and efficiency
  • Organization, functional, team and individual metrics

Schedule

Day 1 — 8:00 a.m. – 4:30 p.m. Registration and Session
Day 2 — 8:15 a.m. – 3:15 p.m. Session

The University of Wisconsin–Madison, as a member of the University Continuing Education Association (UCEA), authorizes this course for 1.4 Continuing Education Units (CEUs) or 14 hours.