Focus on Analysis & Techniques

Supply Market Analysis

The Denali Academy Supply Market Analysis module is intended to provide participants with advanced market analysis techniques, including models for reviewing the external competitiveness of existing contracts, conducting supply market analysis, linking internal demand requirements to market-analysis strategies, and using marketing analysis to identify sourcing strategies.

By the end of Supply Market Analysis module, Denali Academy participants will be able to

  • Objectively review/analyze current category performance
  • Assess the external competitiveness of current contracts and supply market shifts
  • Assess the internal environment and demand shifts for specific spend categories
  • Identify and assess sourcing opportunities based on market-analysis findings
  • Link market-analysis findings to effective sourcing strategies

Cost Modeling & Analysis

The total-cost model is the single most valuable tool for achieving bottom-line impact through strategic sourcing. By using this model, the sourcing team can discretely identify specific actions for reducing costs across the supply chain. The total-cost model establishes the basis for accountability for budget reductions and provides an audit trail to monitor savings. It also gives the team the necessary data to defend against challenges to cost-reduction projections.

With Activity-based costing (ABC), learners can understand where savings can be achieved on the team level. Once the sourcing teams are underway, it is through the ABC methodology that total supply chain costs and savings are identified with certainty. Until a total-cost model is created using ABC, savings potential is speculation.

By the end of the Cost Modeling and Analysis module, participants will be able to

  • Begin to use the structured approach of cost modeling and analysis as a tool to understand total supply chain costs
  • Identify total cost of materials/services
  • Begin to use ABC
  • Compare supplier proposals that contain different supply chain elements
  • Identify opportunity and demonstrate where savings can be derived in the supply chain beyond cost savings
  • Identify supply chain drivers such as quality costs, process costs, specification costs, and operation and maintenance costs


Demand Rationalization

The Denali Academy Demand Rationalization module takes a dual look at demand rationalization: 1) The inventory analyst view of effectively forecasting and leveling demand; and 2) the sourcing analyst view of creating sourcing and category management strategies that can help to reduce demand and the associated costs.

By the end of the Demand Rationalization module, Denali Academy participants will be able to:

  • Understand the fundamentals of effective demand planning, forecasting and management
  • Analyze and determine demand drivers and how to use them to create effective demand forecasts and demand-management approaches
  • Establish strategies for leveling and controlling demand