Masterclass: Understanding Value Chains & Cost Modelling

About this course

The primary purpose of this course is to equip strategic sourcing managers and leaders with the tools to understand the price impact of all players in the value chain and look at how different cost models impact value for money.  Knowing when and where to enter the supply chain is a key aspect of sourcing strategy development.  Some buyers will pursue a strategy of full reverse integration through acquisition others will collaborate with other buyers to form consortiums whilst some may prefer to take the risk of selectively entering the value chain at appropriate intervals.  Allied to one's understanding of the value chain is our understanding of cost models as we may to choose a very different cost model depending upon where we enter the value chain.The session will give the participants a grounding in the following:ü Understanding the value chain (as opposed to the supply chain) and the relationship between the value chain and one's sourcing strategyü Understanding how and when to choose different types of cost modelü How to determine the best cost modelling approach to different buying scenariosü How to ensure you are optimising your Value chainü Price model evaluationIncluded also is an assessment of the total cost of acquisition for a product or service.

Course objectives

• provide a foundational understanding of value chains
• help determine the best cost modeling approaches for sourcing strategies
• equip participants to enhance their sourcing strategies effectively