Finance for the Supply Management Professional

Note: This seminar has not been scheduled for any venue at this time. Please search for other available seminars.

Overview

Explore proven decision-making tools and financial techniques. Learn to communicate the quantitative contributions made by supply management. Apply financial practices to the supply management process and effectively evaluate your suppliers.

Be sure to bring your calculator and a laptop is highly recommended.

Who Should Attend

Supply management professionals who want to better understand the relationship between finance and procurement.

You Will Learn...
  • Nine critical elements of the 3 primary financial statements & their inter-relationship
  • Eight categories of ratios to improve your analysis
  • Three inputs to calculate the Economic Order Quantity (EOQ)
  • How to effectively evaluate suppliers' financial status
  • How to apply modern financial practices to purchasing
  • Six different value formulas to optimize decision-making on capital projects
  • Three key arguments for calculating the benefit of offering/taking a discount
You Will Earn...

14 continuing education hours


Course Outline
  1. Introduction to finance; Finance defined; Basic financial statements; Financial environment and procurement's position; Roles and skills involved; Purchasing's impact on financial statements
  2. Financial framework and analysis tools; Management views and perspective; Procurement financial information model; Procurement planning, forecasting and budgeting; Opportunity and risk analysis
  3. Revenue and cost relationship analysis; Ratio analysis; Breakeven analysis; Cost accounting; Activity based costing/management; Economic profit and the use of value-based tools such as Economic Profit, ABC and Modeling
  4. Capital expenditure process; Capital analysis; Cost of capital; Financial return analysis; Non-discounting techniques; Discounting techniques; Economic profit and evaluating up and down
  5. Cash flow analysis; Dynamics of cash flow; Cash management; Statement of cash flow; Cash forecasting; Supplier analysis
  6. Procurement ratios and formulas; Discount terms; Payment terms; Markups and markdowns; Inventory carrying cost
  7. Finance and accounting relationship; Understanding finance and accounting; Methods and impact; Principles versus practice (theory and practice); Valuation of the organization and understanding the shareholder's expectation

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