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Course Description

In today’s volatile global economy, procurement professionals must possess more than just sourcing and negotiation skills—they need a solid grasp of finance to make informed, strategic decisions. "Finance for Procurement" is a comprehensive training program designed to equip procurement specialists with the financial knowledge necessary to elevate their role, reduce risk, and drive value across the organization.

This course bridges the gap between procurement and finance, empowering participants to understand financial statements, manage supplier risk, conduct cost analysis, and make data-driven purchasing decisions.

Course Objectives

Upon the successful completion of this course, each participant 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
  • 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 organisational risk will be increased through the selection of suppliers who subsequently fail

Who Should Attend?

This course is designed for procurement managers who wish to improve the utilisation of financial tools and techniques in operational procurement decision making.

Course Agenda

5 Days

Registration, Welcome & Introduction

Pre-Test

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 organisation’s money
  • Increasing profits through reducing costs

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

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

Management of funds and resources

  • 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

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

Post-Test

End of the Course

Assessment Methodology

All courses conducted by EdTech will begin with a Pre-evaluation and end with a Post-evaluation. The instructor will evaluate the knowledge and skills of the participants according to the feedback given by participants. This will help to recognize the benefits and the level of knowledge gained by participants through the course.

Training Methodology

Facilitated by a highly qualified specialist, who has extensive knowledge and experience; this program will be conducted using extensively interactive methods, encouraging participants to share their own experiences and apply the program material to real-life work situations in order to stimulate group discussions and improve the efficiency of the subject coverage.

Percentages of the total course hour classification are:

  • ​40% Theoretical lectures, Concepts and approach
  • 20% Motivation to develop individual skill and Techniques
  • 20% Case Studies and Practical Exercises
  • 20% Topic General Discussions and interaction

Course Manual

Participants will be provided with comprehensive presentation material as reference manual. This presentation material is a compilation of core valuable information, references, presentation methods and inspiring reading which will be used as a part of the material guide.

Course Certificate

At the completion of the course, all participants who successfully accomplished the required contact hours will receive an EdTech Training Participation Certificate as a testimony to their commitment to professional development and further education.

Why Edtech ?

  • Industry Experienced; Internationally Qualified Trainers
  • Hands-on Practical Sessions & Assignments
  • Intensive Study materials
  • Flexible Schedules
  • Realistic training methodology
  • High-Quality Training in Affordable Course Fees
  • Achievement Certificate, as approved by the Ministry of Education (Abu Dhabi Center for Technical and Vocational Education Training - ACTVET), HABC, AWS, IAOSHE, SHRM, etc.