Course Details

Maximize Value: Total Cost of Ownership (TCO) in Procurement Training Course

INTRODUCTION

"Go beyond initial purchase price and master the art of Total Cost of Ownership (TCO) in procurement. Our Total Cost of Ownership (TCO) in Procurement Training Course equips procurement professionals with the skills to analyze and optimize the full lifecycle costs of goods and services. Learn to make strategic sourcing decisions that drive long-term value, reduce hidden costs, and enhance organizational profitability. Master the techniques of TCO analysis and transform your procurement practices from transactional to strategic."

DURATION

10 days

TARGET AUDIENCE

This course is meticulously designed for:

• Procurement Managers and Specialists: Responsible for sourcing and purchasing decisions.
• Supply Chain Managers and Analysts: Involved in cost optimization and supplier management.
• Finance Professionals: Collaborating with procurement on budgeting and cost analysis.
• Contract Managers: Negotiating and managing contracts with a focus on TCO.
• Project Managers: Overseeing project procurement and cost control.
• Anyone seeking to enhance their skills in TCO analysis for procurement.

COURSE OBJECTIVES

Upon completion of this course, participants will be able to:

• Understand the principles and importance of Total Cost of Ownership (TCO).
• Identify and categorize all relevant cost components in a procurement decision.
• Develop and apply TCO models for various procurement scenarios.
• Analyze and compare supplier proposals using TCO analysis.
• Utilize data and analytics to improve TCO accuracy.
• Integrate TCO into strategic sourcing and supplier management.
• Communicate TCO findings and recommendations to stakeholders.
• Understand how to properly document TCO analysis.
• Understand the limitations of TCO.
• Understand the importance of lifecycle cost analysis.

COURSE MODULES

Module 1: Foundations of Total Cost of Ownership (TCO):

• Introduction to TCO and its significance in procurement.
• Understanding the limitations of traditional price-based purchasing.
• Overview of cost categories and TCO components.
• Understanding the benefits of TCO.

Module 2: Identifying and Categorizing Cost Components:

• Analyzing acquisition costs (purchase price, delivery, installation).
• Evaluating operating costs (maintenance, energy, training).
• Assessing end-of-life costs (disposal, recycling).
• Identifying hidden costs.

Module 3: Developing TCO Models and Methodologies:

• Building TCO models for different product and service categories.
• Utilizing spreadsheet tools and software for TCO analysis.
• Applying various TCO methodologies (e.g., activity-based costing).
• Understanding how to create a proper TCO report.

Module 4: Data Collection and Analysis for TCO:

• Gathering data from internal and external sources.
• Utilizing data analytics tools for cost analysis.
• Ensuring data accuracy and reliability.
• Understanding the importance of proper data storage.

Module 5: Integrating TCO into Strategic Sourcing:

• Utilizing TCO analysis in supplier selection and negotiation.
• Developing TCO-based supplier performance metrics.
• Integrating TCO into category management strategies.
• Understanding the importance of supplier collaboration.

Module 6: TCO in Contract Management:

• Incorporating TCO considerations into contract terms and conditions.
• Monitoring contract performance and cost variations.
• Managing contract lifecycle costs.
• Understanding proper contract documentation.

Module 7: Communicating TCO Findings and Recommendations:

• Developing effective TCO reports and presentations.
• Communicating TCO analysis to stakeholders (finance, operations, etc.).
• Utilizing data visualization tools for clear communication.
• Understanding how to properly present TCO data.

Module 8: TCO in Project Procurement:

• Utilizing TCO during project planning.
• Managing project procurement costs through TCO.
• Understanding the importance of lifecycle costing within a project.

Module 9: Quality Control and Assurance:

• Understanding the importance of proper documentation.
• Properly auditing TCO records.
• Implementing proper TCO procedures.

Module 10: Case Studies and Best Practices:

• Analyzing real-world examples of TCO applications.
• Reviewing successful TCO implementation strategies.
• Identifying lessons learned and best practices.
• Understanding future trends in TCO.

CERTIFICATION

• Upon successful completion of this training, participants will be issued with Macskills Training and Development Institute Certificate

TRAINING VENUE

• Training will be held at Macskills Training Centre. We also tailor make the training upon request at different locations across the world.

AIRPORT PICK UP AND ACCOMMODATION

• Airport pick up and accommodation is arranged upon request

TERMS OF PAYMENT

Payment should be made to Macskills Development Institute bank account before the start of the training and receipts sent to info@macskillsdevelopment.com