Finance for Procurement Professionals
JHB | Anytime
This intensive 5 day workshop explores financial tools, techniques and methods which may be used in supply chain/procurement such as investment appraisal, ratio analysis, total cost modelling and negotiation planning. A detailed accounting and finance training aimed at stakeholders or individuals who want to understand how to use financial data and indicators to assess a supplier’s position. This course will provide a working knowledge of accounting and finance, specifically aimed at how to evaluate and understand a given supplier at a point in time, as well as providing a basis to manage risk or make key decisions.
This course covers the subject accounting and finance including how to understand key statements such as profit and loss, balance sheet, cash flow and budgeting. It will equip you with a methodical approach to review and interrogate these, and assess and compare a supplier’s financial position and health. The course will equip you to apply some key ratios to better understand a supplier and determine where to look more deeply or what questions to ask in order to make key decisions.
Gaining knowledge to accounting and finance is a key skill for anyone working supply chain/ procurement with important suppliers, and provides a sound basis for supplier qualification and risk management.
Attendance will improve the ability to utilize financial tools of analysis to help reach more robust and defensible procurement decisions.
As well as this, delegates will gain three key benefits from attending:
- Increased confidence in their ability to contribute to investment appraisal, business cases and financial modelling
- Increased confidence in the ability to define and measure the best outcome and measure the benefits of particular choices
- Decreased likelihood that the procurement process will be undermined through poor decisions or that organizational risk will be increased through the selection of suppliers who subsequently fail
Key learning outcomes
By the end of this course, delegates will be able to:
- Demonstrate confidence in using selected tools to enhance the quality of decision-making
- Develop appropriate sourcing decisions based upon interpretation of supplier’s published financial accounts
- Participate in business case and/or investment appraisal decisions and contribute to robust decision-making
- Develop negotiation targets on a logical basis derived from analysis of supplier’s accounts, cost breakdowns or published industry data
- Describe how financial systems and reporting helps the decision-making and running of an organization
- Understand a supplier’s financial position, both overall, and for specific products/services, in effective procurement practice
- Describe the different ways procurement teams can understand the suppliers’ position and the associated difficulties
- Interpret key financial statements including Profit and Loss, Balance Sheet, Funds Flow/Cash Flow
- Be able to perform basic analysis of supplier financial information using key ratios and metrics
- Describe and utilize ways to obtain key supplier financial information
Day 1 Session
Government Procurement System in Botswana
- The Role of Procurement Office Department
- Vision, Mission, Mandate, Values and Services Standards of Procurement Office Department
- Central Purchasing Unit
- Tendering Notices
- Selection of Suitable Suppliers
- Inspectorate Unit
- Accounts Unit
Finance for procurement
- How external events increase procurement “risk”
- Seeking higher “prosperity” through risk reduction
- Making procurement’s role more strategic
- Planning and controlling the organization’s money
- Increasing profits through reducing costs
Day 2 Session
Supplier and own financial strength
- Predicting supplier insolvency
- Constructing the four key financial statements
- Understanding net profit and gross profit
- What published accounts can (and cannot) tell us
- Interpreting the financial statements using ratios
- Interpret supplier’s published financial accounts
Day 3 Session
Pricing and costing
- Cost planning to remain competitive
- The impact of changing volumes on supplier’s costs
- Examples of fixed, variable and hybrid costs
- Describing the benefits of Absorption Costing, Marginal Costing and Activity Based Costing
- Using breakeven analysis to plan for a given profit or ROI
Day 4 Session
Management of funds and resources
- Role of Budgeting in Procurement
- Link between finance department and Supply Chain/Procurement
- Planning and controlling outcomes through budgets
- Key ways to manage shorter and longer-term funds
- Overcoming key budget problems
- The need to consider cash flow in any project
Day 5 Session
Purchasing decision making techniques
- Issues in capital and revenue decision making
- With two or more projects which would be the best project to invest in?
- The time value of money
- NPV, IRR and payback period as investment hurdles
- Calculation of the discount rate and the effect of risk
Key procurement lifecycle financial issues
- The key parts of the procurement lifecycle
- Predicting financial issues at the different lifecycle stages
- Financial risks before creation, during and after delivery of the contract
- Ways to eliminate procurement financial risks before signature
This workshop runs for 5 days
Available on request.
Our Finance For Procurement Professionals is available in a variety of formats to best match your needs
In-House training: We bring the training to your location. Available with customized features created to meet your requirements.
Virtual Training: Delivered totally online, our virtual sessions are designed to keep participants engaged through relevant training, activities for practice, and ongoing reinforcement.
- Finance Practitioners
- Procurement Practitioners
- Supply chain professionals
- Facilities Managers
- Procurement Committee Members
- Finance Committee Members
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- Environmental & Social Management Systems
- Fraud Prevention & Anti Corruption Masterclass
- Risk Appetite & Strategy Masterclass
- Governance, Risk and Compliance Masterclass
- Risk based combined assurance
- Leadership and structures of corporate governance
- Corporate Governance – Role of the board
- Corporate governance Fundamental
- Principles and practices of corporate responsibility
- Engaging stakeholders to build a sustainable plan
- Advanced enterprise risk management masterclass
- Conducting effective lifestyles audits course
- King IV governance compliance and assurance workshop
- Budgeting Skills for managers.
- Financial Analysis, Planning & Control.
- Government Accounting.
- Government Budgeting Including SCOA.
- Accounting for VAT
- Understanding and analyzing financial statements workshop
- Strategic planning, budgeting and rolling forecast workshop
- Strategic forecasting & projections of financial statements masterclass
- Preparing financial statements and annual reports masterclass
- Project finance and modelling
- Pension fund governance, regulations and best practices.
- Mining TAX and strategy masterclass
- International financial reporting standards (IFRS) &updates
- IFRS 9 International finance reporting standards 9 and expected credit loss
- Business intelligence & analytics for finance professionals
- Advanced Recruitment Analysis & Assessment Workshop.
- Disciplinary Code & Procedure Training.
- Employment Equity Legislation Masterclass.
- HR Processes, Culture & Change Management Training.
- Performance management systems training
- Principles and practices of corporate responsibility
- Union responsibilities in the workplace
- Workplace skills plans & annual training reports
- Mining social & labor planning
- Payrol preparation, analysis and management
- New CCMA rules & latest case law
- Human resources & development personnel management
- Developing & Implementing Electronic Documents & Records Management Systems.
- Pragmatic Approach to Managing Records.
- Basic registry, records & archives management
- Pragmatic approach to managing records
- Records management, library management and inventory
- Principles of records management basic – Level 1
- Records management Intermediate – Level 2
- Advanced records management – Level 3
- Fleet Operations Management Accident Investigation & Report Writing.
- Fundamentals of Stores & Stock Control.
- Logistics & Distribution Management.
- PFMA Supply Chain Management Bid Committees Workshop.
- Stockpile Management Best Practices.
- Strategic Procurement & Supply Chain Management.
- Supply Chain Management Introduction Forecasting & Acquisition Management.
- Tender Advisory Seminar.
- Tendering Procedures & Bid Evaluation.
- Understanding the Amended BBB-EE Codes BEE Fundamentals.
- Advanced Circuit Breaker Operation and Maintenance
- Environmental Engineering for Non-Environmental Engineers
- Contaminated Soil and Groundwater, Assessment and Remediation
- Introduction to Six Sigma
- Lean Leadership
- Lean Maintenance Planning & Scheduling
- Mechanical Engineering for Non-mechanical Engineers
- Mineral Process Plant Optimisation Technology and Continuous Improvement
- Mineral Resource Estimation and Process Control of Mineral Processing Systems
- Solar PV System Design
- Structural Engineering for Non-structural Engineers
- Technical Report Writing & Presentation Skills for Engineers & Technical Professionals
- Total Productive Maintenance
- Wastewater Purification and Treatment Course
- Welding Design and Metal Fatigue for Structural Engineers
- Fundamental Hydraulic Theory and Maintenance
- Fundamentals of Mineral Resource Estimation and Valuation of Mineral Projects
- High Voltage Safety Training