The commodity manager is typically responsible for overseeing the purchasing and logistics staff. Their main objective is to ensure all departmental employees are providing high quality work and meeting all company standards. They also ensure that all purchasing requests are completed in an efficient manner, lead cost reduction initiatives, and oversee inventory management and material budgets. The commodity manager is also responsible for establishing approval guidelines for all purchase orders and makes sure that all purchasing procedures are followed. They also provide analysis on corporate suppliers and delegate tasks to subordinates as needed.
Commodity managers work in a variety of industries, but these jobs are most often found in manufacturing and engineering companies that conduct a high level of intricate purchasing. These professionals generally work full time in an office setting. They regularly work with engineers, project managers, sales representatives, production workers, accounting and finance departments, and administrative workers. Additionally, they communicate extensively withoutside suppliers. A commodity manager usually reports directly to the chief financial officer (CFO) of an organization.
Commodity manager jobs require a bachelor's degree in a related field and a minimum of five years' experience in the related field. Excellent organizational and multitasking skills are also required. They must have basic computer skills and may be required to sit for long periods of time.
Commodity Manager Tasks
Negotiate contracts with commodity suppliers and set up terms for prices and delivery.
Conduct analyses of market conditions and trends and use this information to predict future supply needs.
Research potential vendors and compare their products, prices, and services.
Develop and implement strategies to create an efficient supply chain and reduce commodity purchase costs.
Work to minimize supplier risk by establishing strategies for risk evaluation.