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Description

Purchasing Cost Reduction: Analyse, Negotiate and Measure Savings

Deliver sustainable savings across your procurement portfolio without weakening your supplier base

  • 2 days — 14 h
  • In-person or virtual
  • Intermediate
  • Up to 6 participants

The request comes round every year: reduce purchasing costs. The easy levers have already been used, and price negotiation alone eventually damages the supplier relationship or the quality delivered. Without a total cost analysis or a measurement rule agreed with management control, the savings announced never appear in the accounts.

Two days to build a fully argued savings plan: segment the portfolio, identify levers other than price, quantify total cost of ownership and defend the savings achieved before the finance function.

Learning objectives

  • Segment the procurement portfolio to target high-stake categories
  • Calculate the total cost of ownership of a purchase
  • Build a savings plan supported by several levers
  • Conduct a savings negotiation without damaging the supplier relationship
  • Have the savings achieved validated with management control

What makes this programme different

Each participant works on a purchasing category taken from their own portfolio
The total cost calculation is built step by step in a spreadsheet provided to participants
A rule for validating savings with management control is formalised at the end of the session

Programme

1Diagnosing the Procurement Portfolio

Knowing where the real stakes lie

  • Segment spend by category and by supplier
  • Identify situations of dependency and single sourcing

2Total Cost Rather Than Price

Quantifying what a purchase really costs

  • Break down a purchase price into cost elements
  • Factor in transport and storage costs
  • Account for non-quality and maintenance costs
  • Compare two offers on a total cost basis

3Savings Levers

Widening the field beyond price

  • Standardise and rationalise the references purchased
  • Review the requirement with the technical stakeholder
  • Use volume and length of commitment as levers
  • Work on design-to-cost with the supplier

4Negotiating and Proving the Savings

Securing the saving and having it recognised

  • Prepare the economic arguments for the negotiation
  • Handle the objection of rising raw material prices
  • Define the savings calculation rule with management control
  • Track savings in a procurement dashboard

Who is it for

Buyers and procurement managers, together with the technical stakeholders involved in purchasing decisions.

Prerequisites

Initial experience of the procurement function or of supplier negotiation.

Dates & locations

36 scheduled dates between November 2026 and December 2027. Seats are confirmed in the order enquiries are received.

November 2026

December 2026

January 2027

February 2027

March 2027

April 2027

May 2027

June 2027

September 2027

October 2027

November 2027

December 2027

None of these dates suit you? We open additional sessions on request, and any programme can be run privately for your team.

Practical details

Before the programme
Online positioning questionnaire. Your development objectives are shared with the trainer, who tailors the practical case studies to your context.
Teaching methods
Theoretical input, workshops and practical case studies. Digital course materials and method sheets provided.
Assessment
Multiple-choice tests and role-play exercises. Assessment of learning at the start and end of the programme, with immediate and 60-day follow-up evaluations.
After the programme
One year of access to the e-learning platform. Self-assessment of the skills acquired and a 30-day follow-up session with your trainer.
How to register
Registration online or on the basis of a quotation.
Lead time
11 working days after confirmation of registration.
Accessibility
Accessible to people of determination. Contact our accessibility coordinator to design a suitable solution: contact@mpf-academy.ae
Start dates
Rolling intake: in addition to the scheduled sessions, this programme can start on request.