MSD, one of the world’s largest pharmaceutical companies wished to enhance their experienced procurement teams knowledge of cost analysis to enable them to drive cost improvement through more robust cost management.
Project Aim:
- Link participants’ daily cost challenges to the training content.
- Introduce advanced should-cost models, total cost of ownership TCO and could-cost strategies to senior procurement staff.
- Build understanding of how to tactically and strategically use cost analysis to reduce supplier prices and avoid price increases.
Results:
- Immediate cost benefits derived by application of the analysis in real-life situations.
- Embedded cost analysis tools into procurement process.
- Range of strategies used to reduce and avoid cost increases.
- Encouraged cost-focused thinking within stakeholder community.
ADR Services Used:
- Instructor-led Should-cost & Could-cost Workshops.
- Simulation procurement training to embed learning.
- Cost analysis processes and tools (now available via OPRA Procurement e-learning).