Sustainable cost reductions – and how to achieve them

Sustainable cost reductions – and how to achieve them

Full details below or download course outline.

A highly practical one-day programme to enable participants to effectively apply a range of practical cost reduction tools and techniques, implementing a low-cost paradigm across the organisation and the supply chain. This will reduce costs and non-value-adding activities. The key concepts are framed around a proprietary 7-step cost reduction process.

Learning objectives

By the end of the programme participants will be able to:

  • Identify relevant cost pools and drivers and thus focus on the key areas of spend
  • Use a range of tools, techniques, templates and models to reduce cost and ‘non-value-adds’
  • Sell the new paradigm to all stakeholders, including internal customers and contractors
  • Influence and shape a culture of ongoing cost management
  • Understand the impact on relationships with contractors and suppliers and ensure a fit for purpose result
Who should attend?

This course is designed for those who have direct or indirect responsibility for the delivery of sustainable cost reductions.

Course format

The expert trainer for this practical one-day programme adopts a proactive, participative, and participant-centred approach with emphasis on the practical application of the tools, techniques and templates discussed. The learning needs to be embedded into the fabric of the organisation and the trainer uses context-based case studies and other tasks to achieve this.

Special features

The content of this course has been cross-mapped with various competency framework and other international standards. Certificates of attendance provided on request.

Most of the training we deliver is either tailored or completely bespoke. This workshop can therefore be delivered entirely as advertised, or it can be tailored to your particular requirements, or we can simply take it as a starting point for a conversation with you before we draft a completely bespoke programme for you – the choice is yours.

Expert trainer

Ray runs his own international training and development consultancy, made up of 25 specialist consultants. A prolific author, his fourth book, Practical Contract Management, with Steve Kirby and Alan Oxenbury, was published in 2012. He has also had numerous articles and papers published in journals such as Supply Management and the Centre for Advanced Procurement’s Praxis publication.

Ray is Chairman of the Procurement Best Practice Forum, which is made up of many large blue-chip organisations, the purpose of which is to identify and disseminate supply chain management best practices. Ray’s now famous ‘10 Cs’ of supplier evaluation model, first published in 1995, has become an accepted model for the evaluation of suppliers and contractors and has been adopted by many organisations. It is also part of the CIPS level 4 syllabus.

In recent years, he has undertaken training and consultancy assignments across the UK and around the world for organisations such as DWP, NHS, Shell, Lucas Engineering and Systems, the Chartered Institute of Purchasing and Supply, BRC, Nederlandse Aardolie Maatschappij.B.V, Abu Dhabi Company for Onshore Oil Operations (ZADCO), NDC, UK Intervention Board, Ericsson, British Aerospace, Marconi, BBC, Magnox, Ordnance Survey, Chevron, Caspian Pipeline Consortium, Tengzichevroil Company, Medway Council, Coca-Cola and Shell International BV.

Sustainable cost reductions – course outline

1 Welcome

  • Introductions, aims and objectives and plan for the day

2 The opportunity

  • Identifying the non-value adds
  • Why costs rise over time

3 Getting the basics right

  • Ensuring contract compliance and spend management
  • Effective use of current frameworks and supply contracts to ensure secured benefits are being fully used

4 A more proactive approach

  • Identifying the key cost drivers and cost pools
  • Effective management and control and targeting of resources

5 Value analysis

  • How to make use of value analysis techniques and templates
  • Specification review
  • Service level review
  • Scope review
  • Defining what is really fit for purpose at the lowest total cost

6 Waste

  • Using models to eliminate waste and the misuse of resources

7 Purchasing power

  • Using standardisation, collaboration and aggregation as an effective leverage strategy to help reduce total costs
  • Understanding the supply market and level of competition
  • How to develop effective strategies to leverage the spend and the relationship

8 Stakeholders

  • Role of stakeholders in the cost reduction process

9 Developing a cost reduction culture

10 Close

  • Review of key learning points / personal action planning