In-Company Short Training Courses in Supply Chain Planning.

Course Title: Finance for Supply Chain Managers.

The course is designed to:

Provide a sound understanding of how to interpret and use financial statements and reports as evaluation, selection and risk management tools in the supplier evaluation and selection process. The module will consider how to evaluate the end-to-end costs of the supply chain and underpin an understanding of how organisations cost and price products and services.

Course aims:

To develop the student’s ability to make sound use of financial data readily available to them in their supply chain role, use it to develop appropriate sourcing and supplier selection strategies and understand the end-to-end cost within the framework of an overall business case for sourcing decisions and supply chain strategies.

Learning outcomes – At the end of the course students will be expected to be able to:

  • Differentiate between financial and management accounting practice.
  • Show familiarity with financial terminology and its appropriate use in business case analysis.
  • Explain and use appropriately significant financial terminology relevant to the supply chain; including capital assets, variable operational costs and overhead fixed ‘expense’ costs.
  • Illustrate and evaluate the merits of the typical sources of finance available to organisations in differing financial circumstances.
  • Recognise the main commercial forms of company and organisation.
  • Understand how management accountants organise internal budgets for the organisation’s major functions.
  • Select and deploy appropriate forms of investment appraisal.
  • Know how to put together and interpret profit and loss, balance sheets and the main financial ratios for organisations.
  • Be able to critically evaluate financial statements and be able to undertake ratio analysis of a company’s financial accounts and interpret these for financial evaluation and selection purposes.

Indicative Content:

The nature of commercial organisations:

  • Types of organisation.
  • The financial, legal and trading structures of organisations.
  • The financial architecture of the major business models.

Accounting Practice and conventions:

  • Regulations regarding accounting practice and standards in the UK.and internationally.
  • Regulations regarding financial reporting.
  • Management accounting and financial accounting.

Sources of financial information:

  • The role of Companies House and its international equivalents.
  • Sources of financial information:
    • Publicly available.
    • Through Due Diligence

Understanding the financial standing of an enterprise:

  • Analysing suppliers’ financial stability.
  • Using credit reports.
  • Understanding balance sheets and trading profit & loss statements.
  • The importance of assets in the company’s accounts
  • Interrogating a supplier’s financial position.

Using Ratio analysis to evaluate financial performance:

  • Understanding commonly used financial ratios.
  • Calculating financial ratios.
  • Using the appropriate ratio analysis.
  • Making conclusions on financial performance.

Management accounting and end-to-end supply chain analysis:

  • Definitions of Management accounting.
  • The practice and purpose of management accounting.
  • Structuring of management accounts.
  • The concept of inventory holding cost and evaluating the total inventory in a supply chain.
  • Modeling the costs within the supply chain – Cost to Serve Analysis.
  • Using internal and supplier management accounts to estimate end-to-end supply chain costs.

Further reading:

The course will identify and cover in full detailed learning outcomes required for assessment purposes. However, if you wish to read further in order to supplement your learning and cement your understanding of the course, content, aims, and purposes, we recommend the following book(s):

Finance for Non-Financial Managers: A Briefcase Book – Gene Siciliano.