COST & PRICE ANALYSIS FOR PROCUREMENT
Strengthening Procurement Decisions Through Financial Insight and Analytical Rigor
Course Schedule
| Date | Venue | Fees (Face-to-Face) |
|---|---|---|
| 25 – 29 May 2025 | Kuwait | USD 3495 per delegate |
Course Introduction
Procurement professionals play a pivotal role in achieving cost-effective purchasing while ensuring quality and supplier performance. Effective cost and price analysis enables better negotiation outcomes, supplier selection, and risk mitigation—especially in volatile markets or long-term contracts.
This intensive 5-day course delivers practical tools and strategies for analyzing supplier costs, pricing structures, and value propositions. Participants will learn how to assess total cost of ownership (TCO), conduct price benchmarking, and evaluate supplier quotations with greater precision and confidence.
Course Objectives
By the end of this course, participants will be able to:
• Distinguish between cost analysis and price analysis in procurement
• Evaluate supplier cost structures, mark-ups, and pricing models
• Apply total cost of ownership (TCO) and lifecycle costing techniques
• Conduct benchmarking and market analysis for price reasonableness
• Develop negotiation strategies based on analytical insights
Key Benefits of Attending
• Build financial acumen to strengthen supplier negotiations
• Identify hidden costs and achieve true value-for-money purchasing
• Enhance supplier selection and contract evaluation processes
• Support budgeting, planning, and procurement transparency
• Apply structured analysis to complex procurement decisions
Intended Audience
This program is designed for:
• Procurement and sourcing professionals
• Contract and category managers
• Cost estimators and pricing analysts
• Finance staff supporting procurement teams
• Project and supply chain professionals involved in purchasing
Individual Benefits
Key competencies that will be developed include:
• Analytical thinking and financial evaluation in procurement
• Understanding supplier pricing, margins, and cost drivers
• Improved confidence in negotiations and pricing decisions
• Ability to assess and compare vendor quotations objectively
• Skills to develop TCO models and savings scenarios
Organization Benefits
Upon completing the training course, participants will demonstrate:
• Better purchasing outcomes and cost savings
• Enhanced supplier performance monitoring and pricing controls
• Reduced risk of overpayment or missed value opportunities
• Improved procurement planning and transparency
• Alignment of sourcing strategies with financial and operational goals
Instructional Methdology
The course follows a blended learning approach combining theory with practice:
• Concept Briefings – Costing frameworks and analysis techniques
• Case Studies – Real-world procurement pricing and negotiation scenarios
• Hands-On Exercises – Analyze cost elements, TCO, and supplier quotes
• Peer Exchange – Group discussion of supplier challenges
• Tools & Templates – Cost breakdown templates, analysis grids, comparison sheets
Course Outline
Training Hours: 7:30 AM – 3:30 PM
Daily Format: 3–4 Learning Modules | Coffee Breaks: 09:30 & 11:15 | Lunch Buffet: 01:00 – 02:00
Day 1: Procurement Cost & Price Fundamentals
Module 1: Introduction to Procurement Financials (07:30 – 09:30)
• The role of cost and price in procurement strategy
• Difference between cost analysis and price analysis
• Direct vs indirect costs
Module 2: Understanding Cost Structures (09:45 – 11:15)
• Fixed, variable, semi-variable costs
• Overheads, profit margins, contingencies
• Unit cost analysis
Module 3: Price Analysis Techniques (11:30 – 01:00)
• Comparative analysis, historical pricing, catalog pricing
• Market research and benchmarking approaches
Module 4: Workshop – Break Down a Supplier Quote (02:00 – 03:30)
• Analyze a sample quotation and identify cost components
Day 2: Total Cost and Lifecycle Considerations
Module 5: Total Cost of Ownership (TCO) Analysis (07:30 – 09:30)
• Definition and scope of TCO
• Examples: product vs service TCO
• Use in strategic sourcing
Module 6: Lifecycle Costing and Investment Planning (09:45 – 11:15)
• Asset lifecycle phases and costs
• Maintenance, disposal, and sustainability cost impacts
Module 7: Supplier Cost Modeling (11:30 – 01:00)
• Building supplier cost models
• Estimating costs when full transparency isn’t available
Module 8: Workshop – Calculate TCO for Competing Bids (02:00 – 03:30)
• Compare vendor bids using lifecycle cost metrics
Day 3: Supplier Analysis and Pricing Behavior
Module 9: Supplier Financials and Pricing Behavior (07:30 – 09:30)
• Cost drivers and pricing levers for suppliers
• Supplier profit motives and pricing psychology
• Strategic pricing: skimming, penetration, cost-plus
Module 10: Vendor Quotation Evaluation (09:45 – 11:15)
• Comparison templates and evaluation grids
• Adjusting for scope differences and hidden costs
Module 11: Risk and Contingency Pricing (11:30 – 01:00)
• Price escalation clauses
• Currency fluctuation, inflation, and supply risks
Module 12: Workshop – Evaluate and Adjust a Complex Quote (02:00 – 03:30)
• Standardize and score multi-line supplier proposals
Day 4: Negotiation Using Cost & Price Analysis
Module 13: Using Analysis to Strengthen Negotiations (07:30 – 09:30)
• Target pricing and cost-positioning
• Negotiation tactics based on supplier analysis
Module 14: Should-Cost Analysis (09:45 – 11:15)
• Estimating what a product or service should cost
• Cost drivers by category (e.g., materials, labor, logistics)
Module 15: Collaborative Cost Reduction (11:30 – 01:00)
• Working with suppliers on win-win savings
• Understanding supplier constraints
Module 16: Workshop – Role-Play a Price Negotiation (02:00 – 03:30)
• Apply cost knowledge to support your negotiation position
Day 5: Strategic Cost Management and Wrap-Up
Module 17: Strategic Sourcing and Cost Intelligence (07:30 – 09:30)
• Spend analysis and supplier segmentation
• Cost modeling in sourcing decisions
Module 18: Cost Avoidance and Value Engineering (09:45 – 11:15)
• Design-to-cost and specification challenges
• Cost avoidance vs savings
Module 19: Capstone Case Study – Cost Analysis Project (11:30 – 01:00)
• Work in groups to develop a full cost and price analysis
• Present findings to the facilitator
Module 20: Course Review and Certificate Ceremony (02:00 – 03:30)
• Q&A and action planning
• Certificate distribution and feedback
Certification
Participants will receive a Certificate of Completion in Cost & Price Analysis for Procurement, validating their ability to analyze supplier costs, evaluate quotations, and make value-driven procurement decisions using structured financial techniques.