Program Overview
This program, led by an industry expert, helps participants rethink cost management and margin protection in highly competitive environments. The course moves beyond cost-cutting to smart cost structures and value-driven decisions, teaching how to identify hidden cost traps, differentiate between cash-positive and margin-positive deals, and apply real-world tools like margin bridges, cost-to-serve models, and TCO (Total Cost of Ownership). Through case studies, interactive exercises, and simulations, participants build strategies that sustain profitability while supporting growth.
Features
- Distinguish between cash-positive and margin-positive decisions
- Identify hidden cost drivers and margin leakages in operations and sourcing
- Apply structured cost optimization tools without compromising value
- Build a practical margin management and cost improvement roadmap
Target audiences
- Sourcing & Commercial Managers
- Operations & Plant Leaders
- Strategy and Costing Teams
- Finance Managers /Business Unit Heads
Curriculum
- 5 Sections
- 19 Lessons
- 1 Day
Expand all sectionsCollapse all sections
- Decoding Margins – More Than Just Profit %6
- 1.1What is “margin” really? Contribution Margin vs. Net Profit vs. Operating Margin
- 1.2Cash-Positive vs. Margin-Positive
- 1.3A customer/order might show margin on paper but destroy cash flow
- 1.4Payment terms, FX exposure, working capital cycles
- 1.5Apparel/Export Caselet: High-margin buyer causing cash stress
- 1.6Key Concepts: Gross vs. Contribution Margin, Margin Bridge, Operating Leverage, DSO (Days Sales Outstanding), Working Capital Turn, Customer/Channel Profitability
- Real-World Cost Drivers & Margin Killers4
- 2.1Hidden cost elements: Style complexity (high SMV), MOQs, changeovers, poor pre-costing; Sample rework loops, vendor over-reliance, overhead absorption
- 2.2Buyer-side issues: Unrealistic lead times, urgent freight, late PO changes
- 2.3Case: Mid-sized factory with volume growth but declining profits
- 2.4Tool: Margin Risk Radar – identify leakages in current organization
- Strategic Levers for Cost Optimization3
- 3.1Cost vs. Value vs. Risk trade-offs
- 3.2Tools & Concepts: TCO (Total Cost of Ownership); BOM Rationalization; Should-Costing; Zero-Based Costing; Activity-Based Costing (ABC); Make vs. Buy Analytics
- 3.3Case Study: How a knitwear firm improved margins by 9% by streamlining trims procurement & in-house pattern CAD conversion
- Simulation – Cash vs. Margin Decision-Making4
- Cost Optimization – What You Can Do Tomorrow2
Instructor
