Financial Analysis of Supply Chains

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Introduction

Participants in this course gain a working knowledge about supply chain finance, working capital management, and the ways in which companies can improve their working capital efficiency. The material covered in this course is relevant to both large companies as well as small-and-medium enterprises (SMEs).

This course makes clear links between supply chain management and corporate finance. It provides the knowledge and tools to analyze, quantify, and communicate the impact of a firm’s supply
chain in financial terms. Through a mix of exercises and case studies, students learn how the supply chain creates value for the shareholders of the firm and the stakeholders affected by the firm’s operations.

This is not a finance course but rather a survey of accounting and finance topics from a supply chain
perspective. Class sessions are a combination of lectures, in-class exercises, and case discussions
from manufacturer, distributor, and retailer perspectives. Participants are encouraged to take an
analytical approach to identify challenges and assess opportunities as they learn to translate between
the language of finance and the language of operations.

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Program Content

Session Topic Description
DAY 1
Session 1 Introduction to supply chain financial analysis – Why learn finance in operations?
– Supply chain contribution to three pillars of company’s performance (profit margin, growth, asset utilization)
Session 2 Activity-based costing – Dakota office products – case study
Session 3 Cash conversion cycle – Working capital components
– Connecting the components of working capital and C2C analysis
– Interpretation of C2C cycle in various settings
Session 4 Supply chain finance and reverse factoring – Supply chain finance @ Procter & Gamble – case study
DAY 2
Session 1 Working capital simulation – Growth opportunity and managing working capital to grow the company
– Use of financing options for working capital funding and managing the growth
– Understanding the mechanisms of C2C cycle and working capital management in a simulated environment
Session 2 Working capital simulation debrief – Discussion on the important learnings of managing working capital
Session 3 Supply chain cash flow analysis – Analyzing supply chain cash flow in various industries based on historical data
– Discussing the importance of connecting cash flow across companies in the chain
Session 4 Supply chain downstream financial analysis – David Berman Case Study
– Summary and course wrap-up

 

Faculty

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Dr. Javad Feizabadi
Associate Professor, Director of PhD Program and Winter Academy, Director of Mobility Center of Excellence (MCE)
 
Dr. Javad Feizabadi explores the supply chain and value chain design and capability-driven strategies in the current volatile business environment. His research examines dynamic capability development in value/supply chain and creating competitive advantage through value/supply chain design and management.