What does a Sourcing Manager do?

Sourcing managers analyze and direct the costs and expenditures related to a company's procurement. They source a company's strategic supply partners and develop sourcing policies. Sourcing managers also create cost estimates and forecasts for the procurement and negotiate reasonable and cost-effective contracts. They evaluate sourcing procedures, present improvement strategies for senior management approval, and analyze and calculate procurement costs and research and develop cost reduction strategies.

Sourcing managers drive purchasing decisions based on scenario analysis, market trends, and cost and negotiate contracts with key suppliers. They collaborate with the procurement department and identify and follow up with potential new suppliers. They conduct market research, create forecasts and cost estimates, and are responsible for hiring, training, and managing procurement department employees. They maintain strategic sourcing relationships, develop strong partnerships, and need a bachelor's degree in business, economics, finance, logistics, or related fields and at least four years of procurement experience in a related industry.

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Average Years of Experience

0 - 1
5%
2 - 4
20%
5 - 7
68%
8+
7%

Common Skill Sets

CPSM
Consulting
Powerpoint
Negotiation
Judgement
Microsoft Office Suite
Deliverables
Advanced Degree

Sourcing Manager Seniority Levels

Demand Planner
17% made the transition
Supply Chain Manager
13% made the transition
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Sourcing Manager Salaries

Average Base Pay

$108,898 /yr
Same as national average
Not including cash compensation
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$74K
Median: $109K
$160K
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Glassdoor Estimated Salary

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