Distance learning - Managing inflation and protecting margins

Prerequisites

It is necessary to have prior knowledge of cost structure and margin calculations

Objectives

◗ Interpret inflation curves: measurement, variability, and uncertainty.

◗ Measure the impact of inflation on margins based on the cost structure.

◗ Calculate the required increase in the selling price based on margin protection targets.

◗ Select approaches for modeling, justifying, negotiating, and formalizing agreements with customers and suppliers.

Training program

◗ Understanding the economic impact of rising costs

– Impact of rising costs on margins, relationship to cost structure, impact on selling price, and margin protection (in value and as a percentage)
– Interpreting year-over-year and rolling-year cost variances, typical inflation curves by cost category
– Pass-through effects and logic, recoverable portion, contract inertia
– Indexation clauses and contractual price adjustment formulas
✔ UNDERSTAND | Data analysis: interpreting and visually recognizing inflation curves
✔ APPLY | Practical exercise: simulating several scenarios using a simplified model provided
✔ EVALUATE | Quiz: In your opinion… What is the year-over-year change in a purchase price?

◗ Repercussion with customers: prepare for objections and defend your claim

– Preparing a claim file, benchmarks, frequency, documentation
– Structured argumentation, responding to objections, negotiation strategies
– Simulation of a customer/supplier exchange involving sticking points
✔ PRACTICE | Role-play: Prepare a customer presentation based on a case study
✔ UNDERSTAND | Toolkit: Checklist for preparing for a customer meeting
✔ EVALUATE | Debrief: Feedback on demeanor, message structure, and effectiveness

◗ Handling supplier increases: analyzing and challenging

– Critical review of a supplier proposal: missing data, mandatory clauses
– Comparing proposals, cost structure, cost justification
– Identifying the red line, room for maneuver, and breaking points
✔ APPLY | Group case study: comparative analysis of two proposals—identify critical elements
✔ EXPERIMENT | Workshop: Write negotiable and non-negotiable points on index cards for presentation to the entire group
✔ EVALUATE | Quiz: In your opinion… to what extent can a commercial proposal be adapted without compromising profitability?

Why choose this course?

In an environment marked by volatility and uncertainty, companies today face significant inflationary pressures that affect their entire cost structure. As a result, teams must quickly acquire new skills to assess, justify, negotiate, and formalize cost-pass-through increases.

Teaching and assessment methods

Distance learning :

– Three visual elements: a video of the presenter, the presentation, and a virtual whiteboard

– Interactive quizzes

– Maximum of 6 participants

Before: self-assessment quiz

During the session: an overview of key principles, a discussion of practical implications, and examples drawn from recent financial statements. Practical exercises and interactive quizzes help ensure that participants have acquired the necessary knowledge.

Afterward: supplementary materials. The facilitator will be available after the training session to answer any questions related to the training.

Price

740 € EXCL. TAX

Testimonials

Distance learning - Managing inflation and protecting margins