Simon Frost • 1st Procurement Expert: Supply Security | Advanced Cost Modelling | Sustainable Sourcing | Category Management | Training & Coaching | Global Adventures
Yesterday, I co-hosted a webinar with Expana on Cost Modelling.
The webinar went extremely well: 240 attendees! + great feedback – But a concerning insight surfaced…
We ran several poll questions, the first being:
“The cost model training that my business offers is…”
And the answers were:
5/5 – excellent = 1%
4/5 – above average = 16%
3/5 – average = 27%
2/5 – below average = 27%
1/5 – poor/none = 29%
So, 17% of people are being given proper training – great news!
But a massive 83% are only being provided with poor to average training
Simon Frost
Here Are My Thoughts (Please Share Yours)
Simon Frost. Like “clean data,” “cost modeling” is a ubiquitous term of ambiguity tantamount to telling someone they need 8 hours of sleep every night, must eat right, and exercise regularly.
The above post reminded me of the following article excerpt:
“In a recent survey of leading purchasing organizations sponsored by Strategy & Business, cost modeling was ranked among a list of 17 purchasing skills as one of the most critical. More significantly, the difference between the importance ranking and the self-assessed level of skill — the development gap — was among the largest as well.”
What is noteworthy is that I read this in an article in 1998. It doesn’t seem like we have made much progress in the past quarter century.
Cost modeling is the ultimate act of collaboration between stakeholders or “agents.” So, why are we stuck at a “17% neutral training position?”
Here is the link to the first post in a 3-Part series that holds the answer – https://bit.ly/3S5yrX0
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Procurement Insights
Procurement Cost Modeling: Why the “Frost(y)” reception
Posted on July 12, 2024
0
Simon Frost • 1st Procurement Expert: Supply Security | Advanced Cost Modelling | Sustainable Sourcing | Category Management | Training & Coaching | Global Adventures
Yesterday, I co-hosted a webinar with Expana on Cost Modelling.
The webinar went extremely well: 240 attendees! + great feedback – But a concerning insight surfaced…
We ran several poll questions, the first being:
“The cost model training that my business offers is…”
And the answers were:
5/5 – excellent = 1%
4/5 – above average = 16%
3/5 – average = 27%
2/5 – below average = 27%
1/5 – poor/none = 29%
So, 17% of people are being given proper training – great news!
But a massive 83% are only being provided with poor to average training
Simon Frost
Here Are My Thoughts (Please Share Yours)
Simon Frost. Like “clean data,” “cost modeling” is a ubiquitous term of ambiguity tantamount to telling someone they need 8 hours of sleep every night, must eat right, and exercise regularly.
The above post reminded me of the following article excerpt:
“In a recent survey of leading purchasing organizations sponsored by Strategy & Business, cost modeling was ranked among a list of 17 purchasing skills as one of the most critical. More significantly, the difference between the importance ranking and the self-assessed level of skill — the development gap — was among the largest as well.”
What is noteworthy is that I read this in an article in 1998. It doesn’t seem like we have made much progress in the past quarter century.
Cost modeling is the ultimate act of collaboration between stakeholders or “agents.” So, why are we stuck at a “17% neutral training position?”
Here is the link to the first post in a 3-Part series that holds the answer – https://bit.ly/3S5yrX0
30
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