With the role of purchasing increasingly strategic, professionals in the field need to understand finance concepts. In addition to negotiating prices and terms, it is essential to evaluate aspects that impact the company's economy, such as cash flow, total acquisition cost and return on investment.  

This knowledge allows decisions to be made that are more aligned with the organization's financial objectives, strengthening the buyer's role as a sales agent. value generation.

By considering aspects related to finance, the purchasing professional actively contributes to the company's financial health and improves its ability to justify strategic choices. 

 Integrating financial language into the purchasing process also raises the level of negotiations with suppliers, promotes greater integration with internal areas and contributes to more efficient management of resources.

In an increasingly driven scenario data, having knowledge about finance is essential for those working in the supply chain. 

Below, check out the main concepts Finances that buyers should know: 

 1. Inflationary indicators

Understanding indexes such as IPCA, IGP-M and INPC is essential to assess the impact of inflation on supply contracts, price adjustments and long-term negotiations. Buyers who monitor these variations negotiate with greater predictability and better inform their decisions. 

• IPCA – Broad Consumer Price Index

The main indicator of inflation in Brazil, the IPCA measures the variation in the prices of goods and services consumed by Brazilians, such as food, transport, housing, health, among others.

This indicator is used by the Central Bank to monitor inflation and adjust the interest rate, impacting the negotiation with suppliers. 

• IGP-M – General Price Index – Market

The IGP-M is calculated by the Getúlio Vargas Foundation (FGV), the IGP-M reflects the price variation in three major areas: wholesale, consumer and civil construction.

While the IPCA focuses on household consumption, the IGP-M can be more sensitive to economic fluctuations, such as changes in commodity prices and exchange rates. 

• INPC – National Consumer Price Index

The INPC is an inflation indicator that measures price variations for families with an income of 1 to 5 minimum wages.

It is widely used for salary adjustments in labor agreements, in addition to being a reference for the adjustment of social benefits. Many contracts with suppliers, especially service suppliers, provide for adjustments based on the INPC. 

• INCC – National Construction Cost Index

An inflationary indicator that measures the variation in the costs of materials and services used in civil construction, the INCC is used as a reference for adjustments in construction contracts and real estate developments.

It is mainly followed by companies operating in the construction and infrastructure sector, as it directly impacts the value of contracts. 

2. Financial metrics for strategic decisions

• Cash flow

Understanding cash flow is essential for the buyer to act in line with the company's financial capacity. This concept represents the inflow and outflow of resources in the cash register.

When considering the impact of purchasing choices on cash flow, the buyer will seek to negotiate better payment terms or consider discounted advances. 

• Contribution margin

The contribution margin is the amount left over from a product's revenue after deducting variable costs (raw materials, unit freight, among others).

The indicator shows how much each unit sold contributes to covering the company's fixed costs and generating profit. Knowing this value allows the buyer to prioritize acquisitions that impact profitability. 

• Break-even point

The break-even point is the minimum sales volume required for the company to cover all its costs and expenses. After this point, any additional revenue represents profit.

Knowing the break-even point allows the buyer to assess the impact of acquisitions on profit and negotiate with a focus on profitability. 

• TCO – Total Cost of Acquisition

TCO goes beyond price and considers logistics costs, storage, taxes, maintenance, product life cycle, among others.

By adopting TCO analysis, Purchasing professionals evaluate all costs related to the purchase, not just the initial cost. This allows decisions to be made that focus on efficiency, waste reduction, and a higher return on investment. 

• ROI – Return on investment

ROI is an essential metric for evaluating the return generated by an investment in relation to its cost. In the context of purchasing, the indicator allows us to measure the effectiveness of an acquisition.

With this analysis, the buyer justifies investments based on data, prioritizes options with the greatest potential for return and strengthens their strategic role in the company's decisions. 

• Profitability indexes

Indicators such as net margin, ROE (return on equity) and ROA (return on assets) help the buyer to assess the financial health of suppliers and even to project the impacts of purchases on the company's results.

These indexes allow for more informed decisions about partnerships, in addition to contributing to risk mitigation. 

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