Finance for buyers
Why should your procurement team take the Finance for Procurement training?
The Finance for Procurement training provides a unique opportunity to master the basics of financial literacy that will help procurement professionals analyze balance sheets and financial statements, calculate NPV and time value of money, assess risks and creditworthiness of suppliers, and use the provided templates to optimize contract management.
The training program from IPSM and CreditEngineering serves as a powerful tool to quickly improve procurement performance in a company.
This training is designed for procurement specialists and managers.
After the training, participants will know:
basics of financial literacy for procurement
how to calculate the main financial ratios
how to assess the counterparty in terms of risks and creditworthiness
how to calculate NPV and the time value of money
the difference between price and cost
what is TCO and how to calculate it
Training objective:
To provide procurement officers with the basics of financial literacy and tools. This will help to understand the complex financial issues that are so necessary in the modern world for decision-making.
The training will take place online. During these days, all participants will learn tools, approaches, and methods and use them immediately. An important feature is the development of a real case study and ready-made templates that all training participants will receive.
Duration and format
Learning formats: online / offline / mixed
Duration of training: 16 hours
All materials are presented interactively. Participants’ skills are consolidated in practical exercises.
Invitation to the training from Maryna Trepova
Detailed program
| MODULE 1 |
| Beginning. Introduction. Expectations. |
| Why should buyers be able to read the Financial Statements and Balance Sheet? What useful information can be provided to procurement in terms of decision-making? The basics of financial literacy for procurement. How this knowledge can influence procurement management. Familiarization with the case study for the training. |
| MODULE 2 |
| Price and value. What is the difference? What are the methods and approaches to price calculation? How are financial terms reflected in contracts? Price structure. Examples. Exercises in groups. |
| MODULE 3 |
| Currency component and currency component corridor: how to calculate. NPV – what is it? How is it used? How is it calculated? Group exercise. |
| MODULE 4 |
| Counterparty risk management. What do you need to know about your counterparty? How to take into account Country Risk and Currency Risk? How to anticipate the risk of insolvency? Practical risk assessment. Exercises in groups. |
| MODULE 5 |
| Calculation of key financial ratios (liquidity, breakeven). What is ROI and how to calculate it. Understanding the break-even point. Exercises in groups. |
| MODULE 6 |
| Management of commercial terms of the contract. Payment terms, payment terms. Calculation of payment deferral and limits. Linking to the supplier’s credit history and creditworthiness. Exercises in groups. |
| MODULE 7 |
| Total cost of ownership (TCO). How to calculate it? When do we apply it? Cost elements in the TCO. Use in direct and indirect procurement. Procurement life cycle. Non-price factors that affect TCO. Exercises in groups. |
| MODULE 8 |
| Case solution. The final lesson. Answers to questions. Closing of the training. Feedback from participants. |
Who will it be useful for?
Professionals in procurement
- Heads of the procurement function
- Category managers
- Procurement managers
- Procurement specialists
Professionals in the supply chain:
- Supply chain function managers
- Logisticians
- Specialists in the supply chain
As a result of the training, participants:
- They will understand why it is important to know the basics of financial literacy, how to understand the balance sheet and financial statements.
- They will understand how to take into account the currency component in the contract price and the optimal payment terms for counterparties.
- They will study the types of pricing in contracts, features and approaches to pricing.
- They will understand what TCO is and how to calculate NPV and the time value of money in long-term projects.
- They will learn how to evaluate a counterparty in terms of risks and creditworthiness.
After the training, each participant will be able to apply the tools and knowledge of finance to their work: from calculation templates to communication skills.
Describe your need:
For more information, please email request@ip-sm.com or call: +380633043964, Oksana Yakovenko.
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Why participate?
We guarantee
High professionalism of trainers with Ukrainian and international experience.
You will receive
Knowledge from top speakers and the opportunity to apply tools under their mentorship
Practical knowledge
The training uses real-life examples from Ukrainian and international business.
