Supply Chain Manager Responsibilities in Finance

Supply Chain Manager Responsibilities in Finance

There is a direct overlap and overlap between the Supply Chain Manager and Finance, as Supply Chain Management directly impacts cash flow, costs, inventory, and contracts.However, these responsibilities are generally “coordinating, supervisory, and analytical” and are not a replacement for the Finance Manager’s responsibilities.Key responsibilities of a Supply Chain Manager related to financial management:1. Approving and reviewing operating budgetsReviewing budgets for:- Procurement- Transportation- Warehousing- LogisticsParticipating in the preparation of:✔️ Cash Flow Forecast✔️ Procurement Budget✔️ Inventory Budget2. Controlling procurement costsNegotiating to reduce:- Material costs- Transportation costs- Warehousing costsAnalyzing:✔️ Cost Saving✔️ Cost Avoidance✔️ Total Cost of Ownership (TCO)3. Financially approving purchase orders within authorized limitsMay have the authority to:Approve purchase orders up to a certain financial limitReview the order’s compliance with:- Budget- Project needs- Procurement planExample:- Up to £50,000 → Procurement Manager- Up to £250,000 → Supply Chain Manager- Above that → Chief Executive Officer or Chief Financial Officer4. Financially controlling inventoryBecause inventory is considered a financial asset within The company.Its responsibilities include:- Reducing obsolete and damaged goods- Controlling inventory value- Improving inventory turnover- Reviewing inventory counts and discrepancies- Reducing waste and deviations5. Reviewing supplier contracts financially- Payment terms- Credit periods- Late payment penalties- Advance payments- Retention- Bank guarantees6. Monitoring progress payments and invoices, especially in contracting companies.This includes:Reconciling:- PO- GRN- InvoiceEnsuring: (Quantities – Prices – Credits)7. Participating in the preparation of operational financial reportssuch as:- Actual project cost- Variance rate- Expenditure analysis- Supplier analysis- Inventory carrying cost8. Controlling working capitalOne of its most important financial roles is:- Reducing cash tied up in inventory- Improving cash flow- Organizing supply according to actual needs9. Participating in operational investment decisionssuch as:- Purchasing or leasing equipment- Establishing a new warehouse- Contracting with transport companies- Establishing distribution centers