Global Commodity Manager Job Description

Commodity Management

Commodity management is becoming an increasingly important role within the supply chain community as more and more companies attempt to secure their supplier lines, deliver value for money and develop structured relationships with key suppliers. The context that the manager operates in as a whole is significant, even though a commodity manager has a clear managerial role. The role of a commodity manager is very complex and requires someone who is capable of understanding markets, the supply chain, how the business works and so on. It is more than managing commodities, it is about making sure the company is able to survive extreme volatility in commodities and integrating all the different roles within a company.

The Commodity Managers and Category Management

The Commodity Manager would be responsible for buying their Commodity. They would be responsible for selection, negotiations, terms and conditions, and other related matters. Career supply chain and procurement people were the Commodity Managers.

They were considered to be running small businesses with a lot of spend and there were exceptions. Commodity Managers and Category Managers were doing strategic Sourcing activities. They searched for, selected and qualified suppliers.

They managed all contracts. They were responsible for how their suppliers performed. Category Managers would have to report on Sales performance at a detailed level which would inform future supplier and product selection decisions.

Commodity Managers would be buying materials from customers. The Chief Merchant was aligned with Category Management. The Logistics and Distribution organizations were working together.

A Commodity Management Strategy for the Supply Chain

Commodity Management does not include tactical aspects of placing purchase orders. The Commodity Manager is there to provide support, but they focus more on the strategic management of the supply chain. Commodity Management teams can create strategies for specific Commodities, so you need one.

Commodity Managers who are not experienced in developing a strategy are their responsibility to help. It is not enough to just ask your team to develop their strategies and forget about it. Management should review every strategy to provide constructive input, ensure that the strategy is in line with the objectives, and support the personal development of Commodity Managers.

Commodity Management: A Career in Supply Chain Management

Commodity managers are often the ones who make it happen when businesses want to procure finished goods. Commodity management is an important link in the supply chain, whether a firm is involved in creating, producing or selling goods and services. Commodity management is important to a profitable business.

It has the potential to maximize earnings through favorable prices and terms of purchases, and it is less risky than that. Commodity managers use their knowledge of markets, suppliers and company requirements to maintain availability of cost-effective supplies. They are usually responsible for establishing good relationships with suppliers.

They arrange warehousing and inventory levels to meet requirements without wasting warehouse space. Commodity managers are important to a wide range of industries. Some possible areas of opportunity include global retailers, manufacturing and distribution companies, information technology firms, medical device manufacturers, and aerospace and defense firms.

Gaining experience, an advanced degree or professional certifications are required to advance in a commodity manager career. Some organizations offer tuition assistance to employees who want to go to college. The earnings are determined by the company and job title.