Global Standard for Procurement and Supply

Current segment

Level: Advanced Professional

Theme: External Environment

Segment 2.8 Finance in the Organisation and its Supply Chain

Segment 2.8 Finance in the Organisation and its Supply Chain

Knowledge: Will know and understand Capabilities: Will be able to

Sources of short term and long term finance

Critically assess the financing options used by the organisation and its supply chain and suggest actions to mitigate financial risks

The analysis and interpretation of financial statements

Monitor the impact of the supply chain on the financial stability of the organisation and mitigate financial risks

Managing working capital

Critically assess the impact of the supply chain on the organisation's working capital and liaise with senior managers to work to ensure financial liquidity to mitigate financial risks

The use of spot, forward and derivative instruments in foreign exchange for managing the volatility of currencies and commodities in supply chains

Evaluate and implement the use of appropriate instruments to manage the volatility of commodities and currencies in supply chains

The sources of finance and the cost of capital and capital structure of an organisation

Monitor the impact of the sources of finance and cost of capital on the supply chain, taking decisions that will support the organisation's cash flow aims and policy

Dividend policies and shareholder value

Assess the impact of dividends and shareholder value on the financial performance of key suppliers or customers

Mergers, takeovers and the valuation of shares

Advise senior managers on the impact of mergers or takeovers on the supply chain and on the organisation

Company location and the implications on corporate taxation

Advise senior managers of the impact of company location and corporate taxation and how they affect the organisation or its supply chains

Analysis of funding options such as equity, joint ventures, seed funding and outright acquisition

Develop or contribute to business cases and advise senior management on supply chain investment decisions to secure supplier innovation/intellectual property/delivery capacity

The use of open book costing and adjustments

Create policies and processes to understand cost preferably through the use of open book costing, making adjustments for relevant categories of supply

Knowledge: Will know and understand

Sources of short term and long term finance

Capabilities: Will be able to

Critically assess the financing options used by the organisation and its supply chain and suggest actions to mitigate financial risks

Knowledge: Will know and understand

The analysis and interpretation of financial statements

Capabilities: Will be able to

Monitor the impact of the supply chain on the financial stability of the organisation and mitigate financial risks

Knowledge: Will know and understand

Managing working capital

Capabilities: Will be able to

Critically assess the impact of the supply chain on the organisation's working capital and liaise with senior managers to work to ensure financial liquidity to mitigate financial risks

Knowledge: Will know and understand

The use of spot, forward and derivative instruments in foreign exchange for managing the volatility of currencies and commodities in supply chains

Capabilities: Will be able to

Evaluate and implement the use of appropriate instruments to manage the volatility of commodities and currencies in supply chains

Knowledge: Will know and understand

The sources of finance and the cost of capital and capital structure of an organisation

Capabilities: Will be able to

Monitor the impact of the sources of finance and cost of capital on the supply chain, taking decisions that will support the organisation's cash flow aims and policy

Knowledge: Will know and understand

Dividend policies and shareholder value

Capabilities: Will be able to

Assess the impact of dividends and shareholder value on the financial performance of key suppliers or customers

Knowledge: Will know and understand

Mergers, takeovers and the valuation of shares

Capabilities: Will be able to

Advise senior managers on the impact of mergers or takeovers on the supply chain and on the organisation

Knowledge: Will know and understand

Company location and the implications on corporate taxation

Capabilities: Will be able to

Advise senior managers of the impact of company location and corporate taxation and how they affect the organisation or its supply chains

Knowledge: Will know and understand

Analysis of funding options such as equity, joint ventures, seed funding and outright acquisition

Capabilities: Will be able to

Develop or contribute to business cases and advise senior management on supply chain investment decisions to secure supplier innovation/intellectual property/delivery capacity

Knowledge: Will know and understand

The use of open book costing and adjustments

Capabilities: Will be able to

Create policies and processes to understand cost preferably through the use of open book costing, making adjustments for relevant categories of supply

This segment was last updated on: 3rd April 2017

The Global Standard for Procurement and Supply structure

Released in 2014 the Standard is a competency framework of procurement and supply skills, knowledge and capabilities that can be used by individuals and organisations to identity training and professional development needs at varying levels of competency.

The Global Standard for Procurement and Supply structure
×