Savings Maths: Cost Reduction vs Cost Avoidance, Volume-Weighted and In-Year
This lesson is part of the course
In this lesson
You calculate the annual savings of six contracts, split them into hard cost reduction and soft cost avoidance, and show how much of the hard savings lands in this financial year.
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Lessons in this course
- Savings Maths: Cost Reduction vs Cost Avoidance, Volume-Weighted and In-Year Locked
- Should-Cost: Build the Price Up from Material, Conversion, Overhead and Margin Locked
- Total Cost of Ownership: Price, Freight, Duty, Carrying Cost and Quality Cost per Unit Locked
- Comparing Quotes: Early-Payment Discounts as an Annual Rate and the Normalised Unit Cost Locked
- Price Indexation: Base vs Current Index, a Weighted Formula, the Cap and the Allowed Change Locked
- Supplier Risk: Share of Spend, Single-Source Flags and a Weighted Risk Score Locked
- Negotiation Prep: Walk-Away, Target and Opening Price from Cost Data, and a Concession Plan Locked
- Timed Case Exhibit: Price-Increase Questions on One Category and a Score Sheet Locked