Course presentation

Course Level: 

Basic level course.   Approx: 20 minutes.


Course Description:

In the fast-evolving world of procurement and supply chain management, understanding and effectively managing payment terms (PT) is crucial. Our course, "Payment Terms," is designed to provide procurement professionals with essential knowledge and insights into the intricacies of payment terms. This course covers the importance of PT, their impact on cash flow, and the value creation potential. You will learn how to calculate the cost of capital and analyze supplier costs associated with financing PT. With supply chains and cash flow management rapidly changing, this course equips you with the skills to navigate and leverage payment terms to your organization's advantage.


Learning Objectives:

  • Understand the Importance of Payment Terms: Grasp the critical role of PT in procurement and their impact on cash flow.

  • Calculate Cost of Capital: Learn techniques to accurately calculate the cost of capital in relation to PT.

  • Analyze Benefits and Supplier Costs: Evaluate the benefits of strategic PT management and understand the financial implications for suppliers.


Who Should Enroll:

  • Procurement professionals seeking to deepen their understanding of payment terms.

  • Financial analysts and supply chain managers involved in cash flow management.


Why This Course:

This course provides you with the foundational knowledge and practical skills to effectively manage payment terms, a key aspect of financial negotiations in procurement. With these skills, you can positively impact your organization's cash flow and value creation.

Curriculum

    1. Course objectives

    1. Download supporting files used in the course and in case

    2. Explaining the concept of payment terms using Volvo AB T&CS as example

    3. Pre-payment and Advance Payment Guarantee.

    1. How to calculate the value of payment terms / the supplier cost for payment terms

    1. What is the company (Buyer / Supplier) cost of capital. It is their WACC!

    1. Benefits of a supply chain finance.

    2. Blogposts and Cases

    1. Payment Terms - basic course - Quiz

About this course

  • Free
  • 11 lessons
  • Basic level - Tactical buyer role
  • 20 min
  • Quiz and Certificate

Fredrik Axelsson

Instructor

Senior instructor. Fredrik Axelsson

Fredrik is an experienced procurement leader from Gothenburg with a Master’s in Economics and an Executive MBA. His career includes key roles at LM Ericsson, Solectron, Axelson Purchasing Resources, Saab, and Alstom/GE, giving him deep expertise across sourcing, procurement, and business development. In 2017, he founded Sourcing Partner, a consultancy that converted into Learn How to Source. His background ranges from operative buying to sourcing director roles in both line organizations and complex projects, covering industries from manufacturing to banking. Fredrik brings a track record of continuous learning and broad, hands-on experience—knowledge he now shares with the next generation of procurement professionals.

Next Step: Get to know Kraljic and his matrix.

Next recommended step

After completing the course you will have an understanding of who Peter Kraljic is, the history of his Matrix, how to use Kraljic’s Matrix and in which procurement processes you apply Kraljic’s Matrix.
To the course

About Learn How to Source

Learn How to Source is an online platform based in Sweden, offering a range of procurement courses accessible globally. It serves as a community where procurement experts share their knowledge through online courses, designed for various experience levels from introductory to expert. Courses are concise, about 30 minutes each, and cover different aspects of procurement, tailored for different buyer roles. The courses focus on practical knowledge, presented by seasoned professionals, and include quizzes and certificates. They can be accessed from any device, emphasizing microlearning for flexibility and efficiency.