Training Course on Finance for Procurement Professionals

Training Course on Finance for Procurement Professionals 

The Finance for Procurement Professionals Training Course is designed to bridge the gap between procurement and financial management. In today’s fast-paced business environment, procurement professionals must possess financial literacy to make strategic decisions that align with organizational goals. Training Course on Finance for Procurement Professionals empowers participants with the essential financial knowledge to analyze procurement budgets, evaluate supplier contracts, and measure the financial impact of procurement decisions.

Procurement professionals play a pivotal role in controlling organizational expenses and ensuring cost efficiency. However, without a solid understanding of financial principles, their impact may be limited. This training equips participants with the tools to interpret financial data, manage risks, and create procurement strategies that contribute to an organization's bottom line. It delves into key topics such as budgeting, cost analysis, financial forecasting, and compliance. Through interactive sessions, participants will learn to collaborate effectively with finance teams and enhance their contribution to financial planning and performance monitoring. By understanding how procurement decisions influence financial outcomes, professionals will gain the confidence to negotiate better contracts, optimize supply chain costs, and drive overall organizational efficiency.

Course Duration

5 Days

Course Objectives

1. Understand the fundamentals of financial management in a procurement context.
2. Develop skills to interpret financial statements and reports relevant to procurement.
3. Learn to prepare and manage procurement budgets effectively.
4. Gain insights into cost analysis and price evaluation.
5. Understand financial risk management in procurement decisions.
6. Learn to evaluate supplier contracts from a financial perspective.
7. Master financial forecasting techniques for procurement planning.
8. Understand compliance with financial regulations and audit requirements.
9. Collaborate effectively with finance teams for integrated decision-making.
10. Contribute to organizational profitability through strategic procurement practices.

Organizational Benefits

1. Enhance the financial acumen of procurement teams.
2. Improve budgeting and cost-control measures in procurement.
3. Optimize supplier selection through financial evaluation.
4. Reduce financial risks associated with procurement decisions.
5. Strengthen collaboration between procurement and finance departments.
6. Achieve greater compliance with financial regulations and standards.
7. Increase efficiency in supply chain management and cost allocation.
8. Drive profitability through strategic procurement initiatives.
9. Build a workforce capable of making informed, data-driven decisions.
10. Enhance overall organizational competitiveness in the marketplace.

Target Participants

• Procurement professionals seeking to enhance their financial knowledge.
• Supply chain managers involved in cost and risk analysis.
• Finance and accounting professionals working closely with procurement teams.
• Contract managers and vendor relations specialists.
• Senior managers and decision-makers overseeing procurement functions.
• Professionals transitioning into procurement roles requiring financial expertise.
• Consultants advising on procurement and financial strategies.

Course Outline

Module I: Financial Management Tools

a.       Understanding Income Statements

b.      Balance Sheets

c.       Profit Analysis-Cost-Volume-Profit Analysis

d.      Break-Even Analysis

e.       Ratios

f.        Evaluating Financial Management Practices

Module II: Non-Financial Factors in Decision Making

a.       What constitutes financial and non-financial factors?

b.      Impact of non-financial factors on businesses.

c.       Impacts of ignoring non-financial factors

d.      Limitations of non-financial information

e.       Non-financial information in reporting

f.        Strategic issues for investment appraisal.

Module III: Financial Budgeting and procurement planning interface

a.       Procurement planning within the budgetary process -an overview

b.      Budgeting for operational requirements: procurement function’s inputs

c.       Budgeting for capital requirements: procurement function’s inputs

d.      Effect of actual procurement expenditure on the budget

e.       Contribution of procurement market research to sustainable budget

f.        Effect of lowest and highest prices on assets maintenance budget

g.       Impact of framework contract and the operational budget

h.      The relationship between inventory management and the annual financial statements

Module IV: CapEx (Capital Expenditure) Procurement

a.       Why incur capital expenditure?

b.      Planning for CapEx procurements – key considerations

c.       CapEx v/s OpEx (Operational Expenditure) procurement

d.      Financial treatment of capital expenditures-raise in assets; net worth

e.       Sources of finance for capital expenditures

f.        Expenses to be capitalized

Module V: Role of procurement functions in investment decisions

a.       Investment styles

b.      Asset allocation

c.       Diversification

d.      Investment performance measurements

e.       Important factors for procurement practitioners to note that make or break an invest

Module VI: Financial Risk in Procurement

a.       Risks in identifying the need and planning the purchase

b.      Risks in developing specifications

c.       Risks in selecting the purchasing method

d.      Purchasing documentation risks

e.       Risks in inviting, clarifying and closing offers

f.        Risks in evaluating offers

g.       Selecting the successful tenderer risks

h.      Risks in negotiations

i.        Risks in Contract Management

j.        Financial risks in disposal

Training Methodology

The instructor led trainings are delivered using a blended learning approach and comprises of presentations, guided sessions of practical exercise, web-based tutorials and group work. Our facilitators are seasoned industry experts with years of experience, working as professional and trainers in these fields.

Register as a group from 3 participants for a Discount

Send us an email: info@fineskilltrainingcenter.com or call +254769199797 

Certification

Upon successful completion of this training, participants will be issued with a globally- recognized certificate.

Tailor-Made Course

 We also offer tailor-made courses based on your needs.

Key Notes

a. The participant must be conversant with English.

b. Upon completion of training the participant will be issued with an Authorized Training Certificate

c. Course duration is flexible and the contents can be modified to fit any number of days.

d. The course fee includes facilitation training materials, 2 coffee breaks, buffet lunch and A Certificate upon successful completion of Training.

e. One-year post-training support Consultation and Coaching provided after the course.

f. Payment should be done at least a week before commence of the training, to FINESKILL TRAINING CENTER account, as indicated in the invoice so as to enable us prepare better for you.