Course: Cost Drivers Over Time

Cost Drivers Over Time is the process used for documenting changes and re-assessing a supplier's cost base.

Course Outline:

  1. Impact of cost drivers on component prices over time
  2. Data collection to set target prices
  3. Calculate the opportunity for improvement over time

Exercises Example:

  • Supplier Price Relief Request:
    In this exercise, the class uses the concepts of cost driver changes over time to quantify a supplier price relief request.

Expectations Upon Completion:

  • Knowledge to understand micro and macro level influences on cost drivers
  • Ability to gain visibility into current costs by cost driver analysis
  • Skills to answer suppliers' demands for price increases with fact based data
Cost Analysis | Supply Base Consolidation