Strategic sourcing managers are responsible for directing and analyzing how a business spends money. Their ultimate goal is to make sure the business is cost effective so it maintains higher profit margins and a competitive advantage. The research that strategic sourcing managers conduct drives the purchasing decisions for the business. They are expected to rigorously locate and analyze new opportunities and developments for the business. When plans are adopted, these managers also may have to lead conversion management within their organization.
Strategic sourcing managers deal with many suppliers and vendors to negotiate pricing. They work closely with purchasing and procurement departments because the plans that they create directs their activities. In addition, they take direction from and report to senior management. They are ultimately responsible to business stakeholders and may have to present business cases and analyses to stakeholders for approval.
Typically, strategic sourcing managers work in a business setting during regular business hours. At times, they may be required to travel to develop, promote, or maintain business relationships.
Most companies require strategic sourcing managers to have at least a bachelor’s degree in economics, finance, logistics, or a related field. A master’s degree in business is preferred for this position. Strong communication and negotiation skills are required to broker the deals that will be advantageous to the company with suppliers. Additionally, depending on the field, candidates may be required to have at least four years of experience in the business' industry.
Strategic Sourcing Manager Tasks
- Hire, train, and manage sourcing team.
- Negotiate with suppliers and vendors for contracts for timely supplies at fair prices and in compliance with regulations.
- Manage procurement and sourcing policies and activities, including overseeing specific contracts.
- Conduct market research, create estimates and forecasts, and identify cost reduction strategies.