Industrial Equipment Costs Analysis

Outline:
Procurement of Industrial Equipment: Market Strategy & Negotiation is an advanced course designed to strengthen the strategic and negotiation capabilities of experienced procurement professionals.
It positions Procurement as a value-creation function supported by market intelligence, cost analysis, supplier strategy and effective contracting. 
Industrial Equipment Cost Analysis develops participants’ ability to understand, estimate and challenge equipment costs. 
Junior Buyers begin with a simplified product containing four to five cost elements to learn the principles of cost breakdown. 
Senior Buyers or Category Managers then apply a detailed “Should-Cost” methodology to business cases involving Oil and Gas Industrial Equipment. 
Finally, project cost estimators examine a Total Cost of Ownership case, comparing how equipment choices affect both initial project expenditure and future operating costs.
Throughout the course, participants use cost analysis to support purchasing decisions and more informed supplier discussions.

Audience:
This course is primarily designed for Senior Buyers, Lead Buyers, Head of Purchasing, Category Managers who need to develop their strategy and negotiation skills.
It is also recommended to the Technical Administrators who build a relationship with their Vendors and need to understand the cost structure of the equipment they operate.

Deliverables:
By the end of the course, participants will be able to:
-    Build and challenge a should-cost estimate and consider total cost of ownership when comparing procurement options.
The course connects Cost Analysis and Negotiation in one practical process. Buyers can enter supplier discussions with a clearer view of the market and the equipment’s cost drivers, choose negotiation.

Certificate:
The training will be completed by an online test on EvalBox. Upon completion of the training, including the test, participants will be awarded a Certificate of Attendance issued by Adinergy.

1. Industrial Equipment Cost Analysis: From “Does-Cost” to “Should-Cost”: How to fill the gap between Vendor and Buyer‘s prices. 
   - I am a Junior Buyer: The procurement of a simplified product containing only 4 cost elements will be explained to understand the “Should-Cost” approach.
   - I am a Senior Specialized Buyer or a Category Manager: 2 detailed Business cases on industrial equipment will demonstrate how to utilize the “Should-Cost” method by different ways.
   - I am a Cost Estimator in a Project, or I am working for an engineering company: We will examine a Total Cost of Ownership case, comparing how equipment choices affect both initial project expenditure and future operating costs.
   - Conclusion: Identifying the savings through the Cost Analysis and preparing the Negotiation.

Associated modules