Learn How to Strategically Manage Costs and Demonstrate Your Efficiencies using The Price Index Model
How can procurement professionals measure their performance in terms of cost management when there are many variables, such as, fluctuating volumes, volatile markets, and exchange rates in play? Manufacturers can use the COGS and ROI ratios. We know what we paid last year and what we are paying this year for the goods we purchase. But when we are running a thousand SKUs, how can we objectively assess supply management’s effect on the total cost structure – especially in public sector organizations where production costs are less of an issue?
“A weighted price index model allows any organization to measure incremental price variations as an aggregate value over fiscal periods.”
Supply management can establish an in-house benchmark of cost performance and then correlate this to external indices and relative cost drivers over monthly, quarterly, or annual fiscal periods. By isolating the price variations in an index, we can follow trends to develop procurement strategies to effectively respond to market conditions and report out to senior management and operational groups in a strategic and objective manner.
We can now quantify the basis for our decisions.
In this eSeminar, we will take you through the steps to build a price index model and apply it to your organization, so that you can strategically manage costs and objectively demonstrate efficiencies.
Date: August 5, 2020
Time: 10:00am to 11:30am PST
Instructor: Larry Berglund
Format: Online seminar with two-way voice and text communication between you/your team and your instructor
Investment: $119 per person OR register 5 or more and receive a 10% discount at checkout
- Review how to measure supply’s performance in terms of cost management
- Examine a model for measuring incremental price variations as an aggregate value
- Explore ways to objectively demonstrate efficiencies, both internally and externally
August 5, 2020
10:00 – 11:30 AM PT