Commodity Manager Job Description [Updated for 2025]

In the ever-evolving world of commerce, the importance of commodity managers has become increasingly prominent.

As global trade continues to advance, the demand for skilled professionals who can efficiently manage, procure and strategize our commodity resources grows.

But let’s delve deeper: What’s truly expected from a commodity manager?

Whether you are:

• A job seeker trying to understand the core of this role,
• A hiring manager outlining the ideal candidate,
• Or simply intrigued by the intricate world of commodity management,

You’ve come to the right place.

Today, we present a customizable commodity manager job description template, designed for quick posting on job boards or career sites.

Let’s dive right in.

Commodity Manager Duties and Responsibilities

Commodity Managers are responsible for overseeing and managing the purchase of a specific group of products or services for their organization.

They implement strategic procurement processes and methods to optimize the supply chain and reduce costs.

Their duties and responsibilities include:

• Developing and executing commodity strategies for procurement of goods and services
• Negotiating contracts with suppliers to ensure optimal cost, quality, and delivery terms
• Monitoring commodity trends and market conditions for strategic sourcing opportunities
• Building and maintaining relationships with suppliers and vendors
• Working collaboratively with other departments to identify and meet their commodity needs
• Managing commodity risks, including price volatility and supply disruption
• Evaluating supplier performance and ensuring compliance with contract terms
• Implementing cost saving initiatives and reporting on procurement metrics and performance

 

Commodity Manager Job Description Template

Job Brief

We are in search of an analytical and detail-oriented Commodity Manager to manage and oversee our procurement activities.

The Commodity Manager’s responsibilities include developing procurement strategies, maintaining positive relationships with suppliers, coordinating with internal teams regarding their supply needs, and overseeing the procurement process from start to finish.

Our ideal candidate has a robust understanding of supply chain procedures, excellent negotiation skills, and the ability to make sound decisions that benefit our company.

 

Responsibilities

• Develop and implement procurement strategies
• Negotiate pricing, quantity, and delivery schedules with suppliers
• Assess supplier profiles and analyze offers
• Prepare and implement effective negotiation tactics
• Manage relationships with key suppliers to maintain quality of goods, timely delivery, and compliance with contractual obligations
• Coordinate with internal teams to determine their product and service needs
• Monitor market trends, competitor strategies, and market suppliers
• Provide periodic reporting for management on purchasing, controls and processes

 

Qualifications

• Proven experience as a Commodity Manager or in a similar role
• Experience in sourcing and procurement
• Deep knowledge of inventory and supply chain management
• Understanding of market dynamics and sound business judgement
• Ability to negotiate and sustain networking relationships
• Comfortable with figures and in collecting, analyzing and interpreting data
• Solid judgement along with decision making skills
• Strong leadership capabilities
• BSc degree in supply chain management, logistics or business administration

 

Benefits

• 401(k)
• Health insurance
• Dental insurance
• Retirement plan
• Paid time off
• Professional development opportunities

 

Additional Information

• Job Title: Commodity Manager
• Work Environment: Office setting with potential for some travel to meet with suppliers or attend industry events.
• Reporting Structure: Reports to the Supply Chain Director or Procurement Director.
• Salary: Salary is dependent upon candidate experience and qualifications, and in line with market and business considerations.
• Pay Range: $90,000 minimum to $130,000 maximum
• Location: [City, State] (specify the location or indicate if remote)
• Employment Type: Full-time
• Equal Opportunity Statement: We are an equal opportunity employer and value diversity at our company. We do not discriminate on the basis of race, religion, color, national origin, gender, sexual orientation, age, marital status, veteran status, or disability status.
• Application Instructions: Please submit your resume and a cover letter outlining your qualifications and experience to [email address or application portal].

 

What Does a Commodity Manager Do?

A Commodity Manager typically works for a company in various industries dealing with the procurement and supply chain management of goods and services.

They can also work as independent consultants.

They are responsible for managing and overseeing the purchase of commodities, which can range from raw materials to finished goods.

The role involves identifying potential suppliers, negotiating contracts, and ensuring the goods meet the required quality standards and delivery schedules.

Commodity Managers work closely with other departments such as operations, finance, and sales to understand their requirements and ensure the organization’s supply needs are adequately met.

They analyze market trends, supplier performance, and internal demand to make informed decisions about sourcing strategies.

They also manage supplier relationships and are responsible for addressing any issues with the supply of commodities.

Moreover, they are often tasked with finding cost-saving opportunities and implementing strategies to reduce overall procurement costs while ensuring the continuous supply of commodities.

In some cases, they may also be involved in sustainability initiatives, making sure that the sourcing practices are ethical and environmentally friendly.

In short, a Commodity Manager plays a vital role in ensuring that the company’s operations run smoothly and efficiently by effectively managing the procurement and supply of commodities.

 

Commodity Manager Qualifications and Skills

A proficient Commodity Manager should possess a blend of technical knowledge, industry experience, and soft skills, which include:

• Strong analytical skills to assess market trends, supplier performance, and to develop and execute effective sourcing strategies.
• Excellent negotiation abilities for securing advantageous terms and prices with suppliers.
• Extensive knowledge of sourcing and procurement techniques, as well as an understanding of market dynamics and sound business judgement.
• Superior communication skills to effectively collaborate with stakeholders, manage supplier relationships, and present strategic recommendations to leadership.
• Problem-solving abilities to address and overcome supply chain disruptions or issues.
• Strong project management skills to handle multiple projects and tasks, ensuring timely completion with attention to detail.
• Experience with supply chain management software and tools, and proficiency in using them for data analysis and reporting.
• Financial acumen to manage budgets, assess contracts and understand the financial impact of procurement decisions.

 

Commodity Manager Experience Requirements

Commodity Managers typically need a minimum of 5 to 7 years of experience in the procurement or supply chain industry.

This experience should ideally involve direct exposure to commodity management, strategic sourcing, or supply chain operations.

Often starting in a buying, procurement or supply chain analyst role, these professionals gain a deep understanding of market trends, supplier relationships, and strategic sourcing.

This allows them to transition to more senior roles, such as a Commodity Specialist or Commodity Analyst.

After gaining more experience, a professional may step into a Commodity Management role, where they would be expected to handle negotiations, manage supplier relationships, and develop strategic sourcing strategies.

Some organizations may require their Commodity Manager candidates to have experience in a specific industry such as electronics, manufacturing, or automotive.

This helps them better understand the unique demands and intricacies of the commodities involved.

Candidates with more than 10 years of experience often have a solid understanding of global market trends and commodity pricing dynamics.

They may also possess leadership experience, making them suitable for senior Commodity Manager roles or even Director of Procurement positions.

In addition to this, professional certifications such as Certified Professional in Supply Management (CPSM) or Certified Supply Chain Professional (CSCP) are often highly valued and can enhance a candidate’s chances of securing a Commodity Manager position.

 

Commodity Manager Education and Training Requirements

Commodity Managers generally hold a bachelor’s degree in business, economics, supply chain management or a related field.

This role typically requires strong analytical skills, so coursework in statistics, logistics, and operations management can be beneficial.

Many employers prefer Commodity Managers with an MBA or a master’s degree in a relevant field, especially for leadership roles.

This advanced degree often emphasizes strategic decision-making, international trade, and financial analysis, which are critical in this role.

In addition to formal education, Commodity Managers should have several years of experience in procurement or supply chain management.

This practical experience helps Commodity Managers understand the complexities of the global supply chain, negotiate contracts, and manage suppliers.

Some Commodity Managers may also pursue professional certifications like Certified Professional in Supply Management (CPSM) or Certified Supply Chain Professional (CSCP).

These certifications demonstrate a commitment to the profession and mastery of essential skills in the field.

Continued learning and staying abreast of market trends, trade regulations, and advances in supply chain technology are also crucial for success in this role.

 

Commodity Manager Salary Expectations

A Commodity Manager earns an average of $85,000 (USD) per year.

The actual salary can fluctuate based on experience, education, and the location of employment.

 

Commodity Manager Job Description FAQs

What skills does a Commodity Manager need?

Commodity Managers should have excellent analytical skills to understand and predict market trends and fluctuations.

They must have strong negotiation skills to secure the best prices and terms with suppliers, and good communication skills to work with other members of their organization.

Knowledge of supply chain management and procurement processes are also important.

They should also be adept at using software tools for data analysis and procurement.

 

Do Commodity Managers need a degree?

Most Commodity Managers have a bachelor’s degree in Business Administration, Supply Chain Management, or a related field.

Some organizations might prefer candidates with a Master’s in Business Administration (MBA) or equivalent experience.

Certification from professional organizations, such as the Institute for Supply Management, can also be beneficial.

 

What should you look for in a Commodity Manager resume?

A Commodity Manager resume should highlight experience in procurement, supply chain management, and commodity management.

It should also list any relevant certifications and degrees.

Pay attention to their experience with contract negotiations and managing supplier relationships.

Knowledge of industry-specific software is also a plus.

 

What qualities make a good Commodity Manager?

A good Commodity Manager is a strategic thinker who can predict market trends and make procurement decisions that benefit the organization.

They need to be excellent negotiators, able to secure the best prices and terms from suppliers.

They should also have strong communication skills, as they often have to collaborate with other departments within the organization.

 

What are the daily duties of a Commodity Manager?

On a typical day, a Commodity Manager might analyze market trends, negotiate contracts with suppliers, and manage relationships with existing suppliers.

They might also work with other departments to forecast demand and plan procurement activities accordingly.

Additionally, they might need to handle any issues or disputes that arise with suppliers.

 

Conclusion

So there you have it.

Today, we unraveled the intricacies of what it truly takes to be a commodity manager.

Surprised?

It’s not just about purchasing goods.

It’s about strategizing and optimizing the procurement of resources to ensure a company’s smooth operation.

With our ready-to-use commodity manager job description template and real-world examples, you’re all geared up for success.

But why stop there?

Dig deeper with our job description generator. It’s your next step to creating precise job listings or refining your resume to brilliance.

Remember:

Every commodity management decision contributes to the larger picture.

Let’s shape that future. Together.

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