In-Company Short Training Courses in Procurement, Purchasing & Supply.

Course Title: Managing Supply Markets, Price and Cost.

The course is designed to:

Provide an essential skills programme for the procurement professional aimed at developing the learner’s skills and commercial awareness of how to analyse commercial markets, supplier positioning and price and cost.

Course aims:

To allow the professional buyer to move towards a role of Market Manager when engaged in major purchases and to create an awareness of how markets work, how suppliers cost their products and price their products.

Learning outcomes – At the end of the course students will be expected to be able to:

  • Demonstrate the use of market research and modeling to predict the current and likely future form and behaviour(s) of a supply market.
  • Show how to model a supply chain and supply market.
  • Show how to create appropriate approaches and strategies aimed at maximising performance of the buyer in given market conditions.
  • To be able to understand and apply differing cost models.
  • Be able to select appropriate product costing methods for the items being acquired.
  • Demonstrate how suppliers move from cost to price and what conditions drive their pricing decisions.

Indicative Content:

Economic concepts:

  • The fundamentals of micro and macro economics.
  • How markets work:
    • Monopoly.
    • Oligopoly.
    • Perfect Markets.

Price and cost from the supplier’s perspective:

  • Understanding suppliers’ marketing strategies and product positioning.
  • How sellers set price.  

Understanding cost:

  • Elements of cost:
    • Fixed & variable cost items.
    • Cost apportionment.
  • Return on capital employed cost models.
  • Break even costing.
  • Cost mark-up strategies.
  • Marginal costing.

Managing the price and cost decision:

  • Purchaser pricing methods.
  • Should cost techniques.

Further reading:

The course will identify and cover in full detailed learning outcomes required for assessment purposes. However, if you wish to read further in order to supplement your learning and cement your understanding of the course, content, aims, and purposes, we recommend the following book(s):

Purchasing Models Handbook – Andrea Reynolds and Ian Thompson.

How to understand business finance – Robert Cinnamon & Brian Helweg-Larsen.

Excellence in supplier management – Stuart Emmett and Barry Crocker.