Cost/Price Analysis In Procurement

• When organizations discovered they needed to lower costs, the purchasing people would frequently go to suppliers and demand cost reductions.
• Now, professionals recognize that bullying their suppliers might provide a one-time, quick fix on the price, but it wasn’t a long-term solution.
• This presentation will assist procurement personnel to improve their effectiveness in obtaining fair & reasonable prices for goods & services.

• Introduction
• What is purchase value?
• Defining Price & Cost Analysis
• Analytical methods
• Cost Elements
• Defined
• Cost Analysis
• Evaluating suppliers understanding

• What is “purchase value”?
• What are the price comparison methods?
• Identifying the various cost elements to address
• How to use cost estimating and analysis tools
• What is the role of risk assessment?

• Inventory Planning Mgr.
• Purchasing Mgr.
• Supply Chain Mgr.
• Director
• Buyer
• Planners

Michael W. Gozzo is President and Founder of THE TOTAL BUSINESS CONSULTING GROUP, LLC., a firm specializing in counseling and education of all levels of management in the areas of Supply Chain, Lean Manufacturing, Demand Flow Technology, Just-In-Time, Total Quality Control, Manufacturing Systems Implementation, Inventory Control, and Production/Operations Management. 

Recent involvement with Silicon Valley leaders in Supply Chain Management, Lean Manufacturing practices, and ISO includes Cisco, Infineon, Sunrise Telecom, PerkinElmer, Philips Semiconductor, and SanDisk.  Mike Gozzo went to Germany to train operational personnel at Lufthansa Air Cargo.  He has been associated with Lean practices: pull systems, quick change, 5-S, VMI, cell design, and others.

Mike has traveled and worked extensively in Canada, England, Hong Kong, Ireland, Scotland, Germany, Japan, Korea, Mexico, Indonesia, South Africa, Thailand, Bahrain, U.A.E., Qatar, Saudi Arabia, Oman, and Taiwan.

He has an Executive Program Masters Business Administration Degree from the University of New Haven, as well as a Bachelor of Science in Finance from the University of Connecticut. 

He is certified as CPIM & CSCP by the Association of Operations Management (APICS)/Association of Supply Chain Management (ASCM).  

Mr. Gozzo is the co-author of "Made In America - The Total Business Concept" and several other books and numerous published articles. He has developed over 50 courses that can be customized for the respective client.