Finance for Non-Financial Managers

Strategic Cost and Value Management in Procurement

Building Robust Supply Planning & Value Creation Capabilities

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Platform:
Online
In-class
Date Venue Duration
05 - 09 October 2026 Sandton, Gauteng 5 Days
23 - 27 November 2026 Sandton, Gauteng 5 Days
25 - 29 January 2027 Sandton, Gauteng 5 Days
08 - 12 March 2027 Sandton, Gauteng 5 Days
19 - 23 April 2027 Sandton, Gauteng 5 Days

Course Introduction

Ask most procurement teams how they add value, and the answer is usually about the price they negotiated. That’s the smallest part of the picture. The real value sits in what happens after the purchase order is signed — the total cost of owning something over its life, the speed it gets to market, the reputational exposure a bad supplier decision creates, and whether the relationship still works three years in. 

 

This course is built around that fuller picture. You’ll work through Total Cost of Ownership modelling, value engineering, and strategic cost management as practical disciplines, not theory — using case studies, real-world simulations, and toolkits you can take back to your own category. By the end, you’ll be equipped to make the case for procurement as a strategic value driver, not just a cost-cutting function, and to back that case with numbers that hold up under scrutiny.

Course Objectives

By attending this Strategic Cost and Value Management in Procurement course, participants will be able to:
  • Identify key cost drivers and implement strategic cost control measures
  • Analyse supplier pricing and cost breakdowns to uncover opportunities for savings
  • Evaluate Total Cost of Ownership (TCO) and life cycle cost impacts on procurement decisions
  • Develop strategic approaches to cost management that align with corporate objectives
  • Leverage best-in-class procurement tools, benchmarks, and analytics — including AI-assisted cost forecasting — to drive value
  • Enhance stakeholder engagement and build compelling business cases for procurement transformation

Who should attend?

  • Line Managers
  • Cost Engineers
  • Project Managers
  • Department Heads
  • Senior Procurement Leaders
  • Experienced Procurement Professionals
  • Tendering & Contracts Specialists
  • Candidates Working Toward the Occupational Certificate: Supply Chain Practitioner
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Training Methodology

Our diverse instructional approaches ensure effective learning:

– Lectures & Presentations: Engage with expert-driven, stimulating content.
– Course Material: Access well-crafted supporting resources.
– Group Work: Collaborate on discussions and case studies for practical insights.
– Workshops & Role-Play: Participate in immersive, scenario-based activities.
– Practical Application: Focus on applying theoretical knowledge in real situations.
– Post-Training Support: Receive extensive support after training for skill implementation.

Training Outline

Day 1: The Strategic Value of Procurement
Module 1: The Strategic Value of Procurement
  • Understanding procurement's value proposition
  • Linking corporate and procurement strategies
  • Benchmarking world-class procurement performance
  • Procurement KPIs: what and how to measure
Day 2: Frameworks, Systems, and Category Management
Module 2: Procurement Frameworks & Systems
  • Procurement organisational structures: models and best practices
  • Requisition-to-Pay and contract management systems
  • Navigating private vs. public procurement policies
Module 3: Category Management & Market Approaches
  • End-to-end category management tools and techniques
  • Supply market analysis and market approaches
  • Developing best-fit contracting strategies
  • Contract award and performance management
Day 3: Cost Management and Financial Acumen
Module 4: Cost Management & Financial Acumen
  • Cost management and value creation in practice
  • Understanding financial statements for procurement
  • Present Net Value analysis and interpretation
  • Supply chain cost modelling
  • TCO and total lifecycle cost analysis, including AI-assisted cost forecasting — AI amplifies traditional cost management by monitoring, predicting, and flagging anomalies, while strategy and supplier relationships remain led by people
Day 4: Strategic Analysis and Category Strategy
Module 5: Strategic Analysis & Value Creation
  • Applying Porter's Five Forces to procurement
  • Realising value in post-contract award management
  • Advanced decision-making tools: decision trees and root cause analysis
Module 7: Category Strategy Deep Dive
  • Defining deliverables for category strategies
  • Category spend analysis and supply market profiling
  • Understanding stakeholder positions and expectations
Day 5: Selling Procurement Strategy to Stakeholders
Module 6: Selling Procurement Strategy to Stakeholders
  • Creating vision and mission statements for procurement transformation
  • Quantifying benefits and cost of implementation
  • Designing processes and systems for strategic procurement
  • Milestones, resource estimation, and project planning
  • Stakeholder identification, engagement, and management
  • Risk mitigation and communication planning

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FAQs –Strategic Cost and Value Management in Procurement

Master total cost of ownership modeling, cost breakdown analysis, value engineering, and margin optimization to eliminate waste and maximize procurement ROI.

What topics are covered in the Strategic Cost and Value Management in Procurement course?
The course covers total cost of ownership (TCO) analysis, cost driver identification, shoulder-cost and clean-sheet modeling, value engineering, supplier cost breakdown analysis, price-cost frameworking, and strategic value creation beyond purchase price reduction.
Who should attend this procurement cost management training?
This course is designed for procurement specialists, sourcing managers, category managers, cost engineers, commercial analysts, and financial heads looking to move beyond simple price negotiations toward strategic cost optimization.
What are the key learning objectives of this masterclass?
Delegates learn to construct granular clean-sheet cost models, analyze supplier cost structures, implement value analysis and value engineering (VA/VE) techniques, mitigate inflationary pressures, and align procurement savings with financial accounting standards.
How long is the Strategic Cost and Value Management in Procurement course?
The programme is delivered as an intensive 5-day professional masterclass featuring practical cost-modeling workshops, supplier breakdown clinics, and hands-on value engineering exercises.
What practical skills will delegates gain from this masterclass?
Participants will gain practical skills in calculating TCO, building should-cost models, conducting collaborative supplier cost reduction workshops, benchmarking market indices, and negotiating sustainable, margin-improving contracts.
Can Prospen Africa deliver this course as customized in-house training?
Yes. Prospen Africa can tailor the masterclass to focus on your organization's specific spend categories, internal cost structures, supplier cost breakdown sheets, and financial performance targets.

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