What does a Commodity Manager do?
Commodity managers play a critical role in an organization’s supply chain process, overseeing the logistics related to the procurement of general inventory or a specific category of products. They create and oversee a plan for managing supplies, and seek opportunities to negotiate better deals or improve the process. These managers oversee a logistics team and support staff. They also establish and cultivate relationships with partners, clients, suppliers, and other stakeholders.
Commodity managers typically have a bachelor’s degree in a business field, such as supply chain management, but an advanced degree such as an MBA is an asset. They must be highly organized with strong negotiating skills and able to manage multiple complicated projects simultaneously. These roles require data analytics skills and familiarity with supply chain management programs.
What responsibilities are common for Commodity Manager jobs?
- Track performance within each applicable spend category and define budgetary impact.
- Work with the internal teams and the suppliers to improve product quality, business processes and total cost of ownership.
- Partner with appropriate teams to identify sourcing needs, determine vendor and demand management strategies, execute sourcing events, and drive organizational processes and compliance.
- Develop and utilize project KPIs to drive results to meet annual goals and objectives.
- Create and regularly update cost-value analysis for main suppliers.
- Drive cost, technology and value improvements with suppliers across the supply chain.
- Develop and implement sourcing strategies for the utilities spend category.
- Work with area executives to assign team leaders and team members to projects with appropriate skill sets needed.
- Create strategies, approach, and deployment for supplier quality programs and initiatives.
- Perform quarterly business reviews with strategic suppliers, monitoring their adherence to quality, delivery, value and innovation performance metrics.
- Lead and have full responsibility for all negotiations and sourcing initiatives for end user hardware, software, collaboration and productivity tools, and support services.
- Effectively evaluate information/data to make decisions. anticipates obstacles and develop plans to resolve and create actionable strategies and operational plans.
- Lead cross functional teams including IT, engineering, marketing and sales, supply chain, manufacturing, human resources and suppliers through the full project life cycle from discovery, requirements, design, development, pilot, production, commercialization through financial tracking close-out.
- Develop and analyze the supplier landscape for existing vendors and new entrants and emerging technologies and identify key suppliers.
- Establish and implement strategies for negotiating supplier/commodity agreements based on in depth knowledge of foreign and domestic markets and to achieve optimal pricing and terms.
- Prepare and lead the quarterly business review and involve other departments as needed.
- Develop and cultivate mutually beneficial relationships and strategic engagements with key partners.
What are the typical qualifications for Commodity Manager jobs?
- Bachelor's or Graduate's Degree in business or engineering, or Babsms Degree.
- Experience with R Language, SAP ERP, and balanced scorecard software and systems.
- A critical thinker and problem solver.
- Six Sigma training.
- Sound decision making skills and professionalism.
- Comfortable problem solving and multitasking.
- Demonstrated sound work ethic.
- Demonstrated leadership and negotiation skills.
- Dedication to continuous improvement.
- Comfortable running cost analysis and making recommendations.
Education--
Work/Life Balance
3.5 ★
Total Pay--
Career Opportunity
3.5 ★
Avg. Experience2-4 years
How much does a Commodity Manager make?
Confident
$141,657 /yr
Total Pay$99,518
+ /yr
Base Pay
$42,139
/yr
Additional Pay
$141,657
/ yr$91K$225K
Most Likely Range
Possible Range
Commodity Manager Career Path
Learn how to become a Commodity Manager, what skills and education you need to succeed, and what level of pay to expect at each step on your career path.
Commodity Manager
Years of Experience Distribution
0 - 1
9%
2 - 4
40%
5 - 7
34%
8+
17%
Not including years spent in education and/or training
Commodity Manager Insights
Read what Commodity Manager professionals have to say about their job experiences and view top companies for this career.
SiemensCommodity ManagerMay 9, 2021
“Organization changes frequently which affects career development”
JabilGlobal Commodity ManagerMay 25, 2023
“Great balance of work and life.”
Ball AerospaceCommodity SpecialistJun 30, 2021
“Truly great people who trust you to do your job”
NCRCommodity ManagerApr 19, 2023
“Great people to work with”
Applied MaterialsCommodity ManagerApr 24, 2023
“Job stability Employee quality is high Good WLB”
Castleton Commodities InternationalCommodity AnalystMar 9, 2021
“Great people to work with”
Dell TechnologiesGlobal Commodity ManagerJul 10, 2021
“Really good work life balance”
Flextronics Internacional TecnologiaGlobal Commodity ManagerMay 6, 2023
“Good salary for the same industry”
Frequently asked questions about the roles and responsibilities of a Commodity Manager
The most similar professions to Commodity Manager are:
- Purchasing Agent
- Procurement Agent
- Supply Chain Manager
- Buyer