Financial Risks / Opportunities in Supply Management

Learning Goals

Following this module, participants will be able to:

  • Know the objective, content and presentation of the 3 main statements included in the financial reporting.
  • Calculate ratios and ask questions to obtain a picture of the financial health of a supplier.
  • Understand the impact of the cost structure on inventory valuation.
  • Assess the consequences of some procurement decisions on the financial statements presentation.
  • Identify the basic principles of risk assessment.

Target Group

  • Buyers, Lead Buyers and Commodity Managers.
  • People who need to evaluate the financial health of their suppliers or develop strategies to improve the financial performance of their own companies.

Method & Tools

  • Presentation of the main financial statements.
  • Description of financial ratios and cost management principles.
  • Definition and use of net present value and internal rate of return.
  • Presentation of methodologies to manage risks and to profile suppliers.
  • Business game.