ADR was selected by Merck Sharp & Dohme to create a classroom training program entitled Strategic Cost Analysis. The training was designed to complement a range of learning offerings at Merck, and to address the needs of experienced Procurement Professionals.
The objectives of the program were to link participants’ daily cost challenges to the training content, so that immediate value benefits were derived by application of the analysis on real-life supplier scenarios. The training needed to introduce advanced cost models and strategies to senior staff, to enable them to drive improvement through more robust cost management.
ADR worked with Merck to design a tailored program that included course pre-work. The pre-work was submitted to the course tutors prior to class, and was focused on current cost issues such as interpreting supplier cost breakdowns, managing supplier price increase requests and creating “should cost” models for goods and services. The tutors would review the pre-work and use it to create classroom discussion and scenarios based on the cost analysis technique that most suitably addressed each example. The course provided a range of strategies for cost improvement, whether participants were in situations with good supply market competition or a sole source situation. The approaches addressed total cost aspects such as supplier productivity improvements and waste reduction, as well as short term price management.
The training has been delivered by ADR’s international expert tutors in North America and Europe. Upon completion of the course, each participant received a certificate of completion demonstrating their enhanced competency in strategic cost analysis skills.
The Procurement Professionals who attended have applied the tools to support increased rigour in cost management and have embedded cost analysis tools and encouraged cost-focused thinking within their stakeholder community.