Cost Analysis Training & Certification
What will I learn?
In all categories of spend, it is essential for the procurement expert to understand how costs transform into price. Not only to identify opportunities to generate costs savings, but also to contribute to Total Cost of Ownership and Whole Life Costing evaluation.
As part of this course, you will have access to pre and post work activities online to help you prepare and reflect on your training. You’ll not just learn about your leadership and how you can develop it and your impact, but you’ll also be able to put it in to practice in your current role!
Is it right for me?
This course is designed for professionals involved in procurement, cost management, and financial decision-making who want to deepen their understanding of cost analysis techniques. If you’re responsible for identifying cost-saving opportunities, evaluating supplier pricing strategies, or contributing to Total Cost of Ownership (TCO) assessments, this course will provide you with the skills and confidence to make informed, data-driven decisions.
It is ideal for:
- Procurement professionals seeking to refine their strategic sourcing plans
- Individuals involved in negotiating supplier contracts and pricing.
- Managers who want to optimise budgets and improve financial outcomes for their organisations.
- Anyone looking to enhance their understanding of cost breakdowns and pricing models.
What are the learning objectives?
- Understand the different types of costing
- Distinguish between Fixed and Variable costs, and Direct and Indirect costs
- Understand Absorption and Marginal costing and see how suppliers use these methods when setting their prices
- Be able to use and understand the strengths and weaknesses of Open Book costing and Cost Transparency
- How to use T.C.O (Total Cost of Ownership) when negotiating
- How to create a cost model and how to use it to distinguish cost drivers
- Be able to apply PPCA (Purchasing Price and Cost Analysis) to aid your sourcing strategies and plan
Book a course for your team
To book an individual place on a course, click here.
Or if you're interested in learning more about how we can help enhance your teams' capability, fill out your details below and we'll be in touch to let you know how CIPS Procurement Skills Training can help your team.
Agenda
Online pre-work should be completed before the start of each training session. The virtual room will open 15 minutes before your session.
Introductions and aspirations followed by a discussion on pre-work activities
Session 1
- Definitions and Types of Costing
Session 2
- Fixed/Variable and Direct/Indirect Costs
Session 3
- Absorption Costing
Session 4
- Marginal Costing including Break even Analysis and Activity-Based Costing
Session 5
- Open Book Costing and When to Use Cost Transparency
Session 6
- Price Influences other than Cost and Sustainable and Ethical Costing
Session 7
- PPCA Cost Drivers, Levers and Cost Modelling
Session 8
- Case Study Exercise