What is TLC, TCO, and Present Value?
This session will define the fundamental concepts of TLC and TCO as well as the basics of net present value analysis. Examples will be presented to illustrate common sourcing errors from incorrect cost analysis and how to avoid them
Methods of Cost Analysis
This session will discuss how to obtain the data required for cost analysis from stakeholders. It will also review techniques such as product segmentation and ABC analysis.
Teams will be asked to analyze and apply TLC and TCO to specific sourcing situations involving cross-border shipments and present their solutions for critical evaluation by faculty and peerarning)
Cost Drivers and Volatility
Cost driver models can be used to improve continuous procurement of material. This session will illustrate how cost driver models can be developed for significant commodities. The impact of price and demand volatility on multi-period sourcing decisions as well as risk mitigation for volatility will be discussed