Contract and Financial Management

Course Description

Due to the complexity of supply chains it is necessary to have in place effective contract and financial management arrangements. The aim of this unit is to help learners explore the importance to those who manage supply chains of, initially, ensuring there are no contractual or financial weak leaks which could have a negative impact, whilst helping to ensure all contract and financial arrangements benefit the supply chain being managed.

Course Objectives

Due to the complexity of supply chains it is necessary to have in place effective contract and financial management arrangements. The aim of this unit is to help learners explore the importance to those who manage supply chains of, initially, ensuring there are no contractual or financial weak leaks which could have a negative impact, whilst helping to ensure all contract and financial arrangements benefit the supply chain being managed.

Key Topics

1. LO1: Understand contract management in logistics.
2. LO2: Understand how to manage a contract in logistics.
3. LO3: Understand the fundamentals of financial management in logistics.
4. LO4: Understand how finances are managed in logistics.

Course Outline

Learning Outcomes

1. LO1 Understand contract management in logistics.
2. 1.1 Explain what is meant by the term ‘contract management in a logistics context.
3. 1.2 Describe the key components of contract management
4. 1.3 Differentiate between upstream activities and downstream activities.
5. 1.4 Illustrate a contract management cycle.
6. LO2 Understand how to manage a contract in logistics.
7. 2.1 Illustrate a contract management framework.
8. 2.2 Differentiate between contract management and contract administration.
9. 2.3 Compare contract management key performance indicators.
10. 2.4 Describe types of contract risks.
11. 2.5 Assess the effectiveness of a logistics business’s contract management.
12. LO3 Understand the fundamentals of financial management in logistics.
13. 3.1 Explain what is meant by the term ‘financial management’ in a logistics context.
14. 3.2 Describe the key components of financial management.
15. 3.3 Illustrate key elements of financial management in logistics.
16. 3.4 Explain why financial management is important to a logistics business.
17. LO4 Understand how finances are managed in logistics.
18. 4.1 Explain key financial relationships for a logistics business.
19. 4.2 Illustrate the concept of total cost analysis.
20. 4.3 Explain key factors involved in financial management.
21. 4.4 Describe types of financial risks.
22. 4.5 Assess the effectiveness of a logistics business’s financial management.