Finance and Cost Analysis for Procurement Professionals

Kurs Tarihi: 07 Ocak- 28 Ocak 2026
Kurs Gün ve Saati: Çarşamba 09:00-12:00
Toplam Saat: 12 Saat
Derslik: 424
Kursun Dili: İngilizce
Öğrenim Şekli: Yüzyüze
Kontenjan: 30

Syllabus – Finance and Cost Analysis for Procurement Professionals (12 hours)

Instructor: Dr. Öykü Yücel
Duration: 12 hours (6 sessions × 2 hours)
Mode: Interactive lectures, case exercises, and Excel applications
Target Group: Mid- to senior-level procurement and contract officers

Session 1 – The Financial Foundations of Procurement

Topics

Why procurement professionals need financial literacy

The accounting equation: Assets = Liabilities + Equity

Structure and purpose of key financial statements

Income Statement

Balance Sheet

Statement of Cash Flows

Interpreting financial performance: revenues, expenses, retained earnings

Case: Alibaba financial statements
Learning Outcomes

Read and interpret basic financial statements

Understand the financial position of suppliers and partners

Link procurement decisions to company financial health

Session 2 – Financial Statement Analysis for Supplier Evaluation

Topics

Tools of analysis: Horizontal, Vertical, and Trend analysis

Ratio analysis fundamentals

Liquidity: Current Ratio, Working Capital

Efficiency: Inventory & Receivable Turnover

Solvency: Debt Ratio, Debt-to-Equity

Profitability: Profit Margin, ROA, ROE

Benchmarking against industry standards
Learning Outcomes

Conduct supplier financial-health assessment

Compare performance across competitors and years

Use ratio indicators for negotiation and risk mitigation

Session 3 – Cost Allocation and Activity-Based Costing (ABC)

Topics

Product cost components: Direct Material, Direct Labor, Overhead

Traditional vs. Activity-Based Costing

Steps of developing an ABC system

Identifying cost drivers and allocation bases

Procurement applications:

Should-cost modelling

Benchmarking without full cost transparency

Reverse engineering supplier quotes
Learning Outcomes

Distinguish between traditional and ABC approaches

Identify hidden cost drivers in supplier pricing

Apply ABC logic to negotiate fairer contracts

Session 4 – Life-Cycle and Cost-Behavior Analysis

Topics

Life-Cycle Costing (LCC): from acquisition to disposal

Procurement case studies: equipment, fleet, IT contracts, outsourcing services

Variable, Fixed, and Mixed Costs in supplier pricing

Regression analysis for estimating mixed costs

Make-or-buy decisions using cost behavior insights
Learning Outcomes

Evaluate total ownership cost beyond purchase price

Separate fixed and variable elements in quotations

Use LCC for sustainable and cost-efficient sourcing

Session 5 – Cost-Volume-Profit (CVP) and Time Value of Money

Topics

Contribution margin and break-even analysis

Sensitivity analysis: “what-if” scenarios in procurement

Weighted Average Contribution Margin (WACM) for multi-product settings

Time Value of Money (TVM): compounding and discounting

Present Value (PV), Future Value (FV), NPV concepts

Excel applications for procurement investments
Learning Outcomes

Determine break-even volumes and margins

Apply CVP and sensitivity tools to supplier negotiations

Calculate PV and FV to compare lease vs. buy alternatives

Session 6 – Capital Budgeting, FX Risk, and Green Finance

Topics

Capital-budgeting tools: NPV, IRR, Payback Period

Evaluating investment projects under resource constraints

Procurement insight: hurdle rates and supplier development projects

Foreign exchange markets and currency-risk management

Spot vs. Forward contracts

Option Forwards

Introduction to Green Finance Instruments

Green Bonds, Sustainability-Linked Loans

Carbon Markets & Offsets (link to CBAM context)
Learning Outcomes

Evaluate capital projects with NPV and IRR methods

Understand FX exposure in international sourcing

Recognize green-finance mechanisms supporting sustainable procurement

Teaching & Assessment Methods

Interactive case discussions (Alibaba, Nestlé, Ørsted, EU ETS examples)

Excel-based numerical exercises (ABC, CVP, NPV, IRR)

Mini-quiz & group presentation on supplier financial analysis