Finance for Purchasing Managers: Understanding the Financial Impact of Buying Decisions
- 3h 58m
- Richard France
- Ashgate Publishing
- 2013
Managers involved at a senior level in the purchasing function require very particular financial skills. They need to: analyse the financial health and stability of their suppliers; model different cost and price scenarios; understand and manage budgets; and be comfortable with the financial aspects of capital purchases.
Finance for Purchasing Managers is written from this perspective using buyer's language and interpretation.
Richard France explores four key areas of expertise required of a buyer in today's environment:
Financial analysis of suppliers - this includes understanding the financial aspects of a buyer's own organisation plus analysing key suppliers and how to use information to gain a negotiating edge.
Pricing, costing and cost modelling - including costing methods and their application and how an understanding of these can give buyers a greater understanding when dealing with supplier quotations.
Managing resources - including budgeting and sources of finance. This shows how budgets are drawn up and the importance of understanding the implications of the buyer’s decisions on a supplier’s cash flow forecast.
Finally, capital and revenue purchasing decisions and techniques - covering standard investment appraisal techniques and how these can be used for deciding on the best deal from a choice of suppliers for both capital items as well as a standard long term parts supply contract.
Finance for Purchasing Managers may be used to support the CIPS Level 6 Course 'Finance for Purchasers' but also offers a readable and practical guide for those at a senior level in purchasing whether in the public or private sector.
About the Author
Richard France is a Chartered Accountant (FCA) and has an MBA from Henley Business School. Having qualified, he became Finance Director of a 300-employee manufacturing business followed by a 20-year period combining lecturing at University with financial consultancy and training work in his own company. Prior to his current full-time role lecturing in Finance and Accounting at Manchester Metropolitan University, he spent several years working for PMMS Consulting Group, which is an International niche consultancy company specialising in Purchasing Training and Consultancy. His role was to develop the key financial skills required of buyers in both the public and private sectors. He has worked with many well-known public companies in retail, services and manufacturing, from where much of his source material has come.
In this Book
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The Role of Finance from a Purchasing Perspective
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Types of Organisation, the Main Accounting Statements and their Primary Use
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Income Statements
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Balance Sheet – Statement of Financial Position
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Cash Flow Statements
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Interpretation of Accounts
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Sources of Information Used in Costing and Negotiation
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Introduction to Costing
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Absorption Costing
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Activity Based Costing
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Costing for Decision Making
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Supplier Pricing Options
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Cost Modelling
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Budgetary Process and Budgetary Control–a Buyer's Perspective–Public Sector Issues
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Corporate Planning and Budgetary Control
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Managing Finance –Short Term
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Managing Finance –Long Term
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What is Capital Investment Appraisal?
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Steps in Investment Appraisal
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Techniques of Appraisal
