Customers are under intense pressure to reduce
their costs and improve their profitability. And the price
they pay for goods and services is an obvious target. Yet
as more and more customers put pressure on prices, suppliers
find they cannot continue to provide the level of service
they did in the past because of the negative impact on their
profits. The result is often a lower price for the customer,
but at a higher
total cost of doing business, and lost
profits to the supplier. To combat this trend, both customers
and suppliers need to be able to identify ways to reduce the
total cost of doing business, understand the impact and be
able to measure it in dollars. Why is this so important? Because
if the customer cannot see the worth of the value a supplier
adds, they are almost forced to focus on pricing.
The joint customer / supplier training session helps to
create a common understanding of the total cost impact the
supplier has on the customer’s costs and how this impact
can be measured. It helps to overcome the issue of price
being the only measurable cost, by evaluating the impact
that a supplier can have on the customer’s revenues,
assets, expenditures (total) and processes. It provides
the tools for identifying where the impact occurred, how
it affects the customer, and the means to measure it. During
this training session both customers and suppliers will:
The seminar focuses on Supply Chain Management and the
Total Cost of Ownership, but it can also help the supply
chain partners learn how to work better together for their
mutual benefit. And while the exercises focus on the companies
attending, it is applicable to almost any customer/supplier
relationship.
