Benchmarking skills include both data collection and synthesis techniques.

Course Outline:

1. Define Best-in-Class Performance
2. Analyze Cost at the Component Level
3. Normalize Data for Benchmarking
4. Present Benchmark Data Effectively

Exercise Example:

• Cost Breakdown Benchmarking:
  The class is given cost breakdown information for four items. Given the data, each team must identify the key cost drivers, compare their cost elements to best-in-class levels and present the information with price targets to the supplier.
  

Expectations Upon Completion:

• Skills to identify key cost elements to benchmark
• Knowledge to compare spend data by cost components
• Capability to determine pricing gaps based on spend data
• Ability to present target prices to suppliers