Commodity Manager Job Description, Skills, and Salary
Get to know about the duties, responsibilities, qualifications, and skills requirements of a commodity manager. Feel free to use our commodity manager job description template to produce your own. We also provide you with information about the salary you can earn as a commodity manager.
Who is a Commodity Manager?
There are certain items or products that are fixed regardless of the owner, seller, producer, or supplier; they are called commodities and include but are not restricted to gold, petrol, oil, and wheat. These commodities are spread across different parts of the world; most economies in the world rely or depend on one or more commodities. An important process in the supply chain is commodity management. The process entails the ability of seasoned individuals or firms to efficiently secure supply lines, build relationships with producers and suppliers, and provide value for money spent. The process adopts a strategic plan and robust mechanism to succinctly oversee and manage risk and value. Thus, this article will provide an insight into who a commodity manager is, the roles and responsibilities of commodity managers, and the qualifications for a role in commodity management. Subsequently, a guide on how to become a commodity manager will be provided.
A commodity manager is a professional or expert in commodity management. He or she adopts and uses a systematic and thorough approach to oversee a firm or organization’s commodities. They ensure the effective use of these items and examine how organizations and firms purchase different commodities. In relation, a commodity manager examines forces in the market that drives a commodity and determines the buying pattern or sequence of a firm. Overall, these professionals strive to mitigate and reduce the risks associated with purchasing a particular commodity as well as handle procurement and sourcing.
Additionally, commodity managers coordinate and direct the buying of commodities to boost an organization’s supply chain. They perform a market evaluation to reduce risks, procure supplies from suppliers and vendors, and supervise and coordinate the working patterns and conditions of department or unit staff. A commodity manager has an outstanding knowledge of business and commodities. They utilize their business acumen to navigate commodity markets to determine risks and rewards. They assist employers and enterprises in achieving their business goals by working through and combating market risks. Apart from the general duty of managing commodities, these experts procure inventory and specific products on behalf of the business or company. He or she collaborates with markets and suppliers to stabilize the supply chain and prevent it from floating. The complexity of commodity management necessitates that a commodity manager knows and understands the supply chain, market risks, business strategies, and demand and supply. The role of a commodity manager involves effective risk management, problem-solving, critical thinking, and knowledge of volatile commodities and markets.
Similarly, the role of a commodity manager entails selling and buying commodities on behalf of the organization. They are entrusted with the responsibility of maximizing profits and ensuring price stability. Significantly, an individual might choose to oversee several commodities or specialize in managing one commodity like gold, oil, livestock, or metal. An important feature or element of a commodity manager’s endeavor is knowledge and identification of market trends; he or she often utilizes any opportunity that arises in the market to make smart investments toward making profits. The need for a commodity manager is somehow connected, driven, and influenced by the demand for products and commodities including beverages and food. The increase in global population means that the need for commodities will be more and thus, more commodity managers will be needed.
Furthermore, a commodity manager enjoys a fulfilling, exciting, stimulating, rewarding, and challenging career. They are among the selected few that enjoy their careers and work in several industries and fields. Also, they have the opportunity to manage or oversee various commodities ranging from food items to oil and gas products and by-products. The position might involve travel and most commodity managers begin from lower roles (including purchasing agent, buyer, and assistant commodity manager) and climb up the ladder with accumulated experience and advanced learning. Crucially, there are numerous opportunities for career advancement and progression in the sector.
Commodity Manager Job Description
Below are the commodity manager job description examples you can use to develop your resume or write a commodity manager job description for your employee. Employers can also use it to sieve out job seekers when choosing candidates for interviews.
The duties and responsibilities of a commodity manager include the following:
- Oversee and coordinate an organization’s supply chain; source, review, and purchase commodities.
- Apprise, modernize, and manage inventory strategies to boost sales and improve stock quantities.
- Assess, gauge, and suggest new suppliers to employers or management teams.
- Negotiate and choose the best strategy for sourcing commodities to get favorable prices.
- Draft contracts and terms of agreement with suppliers.
- Develop and sustain excellent working and professional relationships with distributors and suppliers.
- Ensure that the best commodities are sourced or procured by staying abreast with market trends and risks.
- Work within the confines of the allocated budget and timeline.
- Monitor, direct, and oversee unit staff, especially when drafting purchase orders.
- Settle customer, supplier, and vendor misunderstandings and disputes.
- Hire, onboard, orientate, and train newly hired department staff.
- Verify, weigh, and authenticate market information and supplier details.
- Develop strategies to mitigate risk and improve commodity purchase effectively.
- Assess and approve supplier and market details.
- Meet set deadlines by liaising and promoting teamwork.
- Collaborate with team members and management to develop pricing techniques and procedures.
- Provide department and general feedback to team members quarterly or monthly.
- Write proposals for supplies and commodities.
- Ensure that the organization’s principles, standards, and guidelines are maintained always.
- Organize and build a self-sufficient and robust commodity supply base.
- Reduce and minimize risks and focus on examining supplier recital or performance.
- Develop prudent knowledge and understanding of the sales and purchase power of different commodities.
- Develop and design new and trendy strategies for sourcing commodities.
- Communicate and interact with vendors and suppliers and determine their concerns, worries, and fears.
- Create financial models to ascertain the cost of production of commodities.
- Adopt and suggest commodities that will be beneficial to the firm by forecasting price changes.
- Research and identify opportunities for growth of certain products or commodities.
- Monitor advancements in technology, market innovations, and political developments that can influence the price of commodities.
- Use previous records of trade and other relevant data to determine where operational improvement is needed.
Qualifications and Requirements
An education, training, industry-specific or related experience, certification, and licensing are all major requirements for commodity management. Also, adequate knowledge of finance, financial transactions, and the financial markets are equally important for a role in commodity management. Often, employers highlight negotiation and interaction with suppliers and vendors as key requirements as well. Thus, the major qualifications for a commodity manager are summarized below;
- Education: The best candidate(s) for the role of a commodity manager must have at least a bachelor’s degree. Since it is a managerial or management role, an advanced degree might be required by some employers or firms. However, a four-year degree in finance, supply chain management, or any related course can suffice.
- Commodity manager training requirement: In most cases, newly employed or hired commodity managers receive training on the job. However, prior training and orientation on industry-based best policies and procedures is an advantage. Also, the ideal applicant must demonstrate prior training and knowledge of industry-related software and basic computer applications.
- Commodity manager experience requirements: Most employers demand a minimum of four years of experience in a similar or related role. Candidates with years of experience in commodity and/or supply chain management are mostly considered.
- Certification: Though not compulsory, certification makes an individual more employable. Certification in the industry enables an individual to acquire added skills and expertise synonymous with commodity
- Licensing and professional membership: Just like certifications, a license is not mandated to work as a commodity manager. Nonetheless, there are companies, firms, and employers that prefer candidates with licenses. Similarly, being a member of an industry-based or related professional association or body is a bonus.
Essential Skills
Commodity managers need core skills and expertise to thrive in their endeavors. Skills are important cogs for career growth and advancement. Commodity managers’ skills promote company-vendor relationships, enhance the supply chain, and promote harmony and cohesion among team members. As full-time workers, commodity managers rely on these skills to assign responsibilities to department staff, organize internal and external procurement, and develop financial models to improve the organizations’ earning capacity. The core skills for commodity managers are;
- Technical skills: The role of a commodity manager includes mechanical, technical, and computer operations. Hence, they need technical skills to operate computers and other essential software. In relation, technical skills help these professionals to decipher and unlock the physical and chemical components of some commodities.
- Analytical skills: A commodity manager often collects, gathers, manipulates, and interprets data. This requires expertise and proficiency in analysis. To effectively conduct market surveys, predict demand and supply, evaluate trends, or weigh the financial implication of certain decisions; a commodity manager must hone and possess adept analytical skills.
- Problem-solving skills: Undoubtedly, there are inherent and emerging risks associated with every commodity. The commodity manager determines and identifies such risk and proffer remedies or solutions. This requires problem–solving skills. This skill is also necessary for resolving issues relating to vendors, suppliers, and clients.
- Knowledge of different commodities: Simply, an individual cannot thrive in commodity management without knowing about various commodities. Arguably, this is the most important skill among the lot. He or she must know and understand the working principles of the industry and different commodities as well as market trends and the demand and supply chain.
How to Become a Commodity Manager
Becoming a commodity manager involves several steps and procedures. An individual must pass through the school, become accustomed to specific or different commodities, gain work experience, and/or pursue certifications. Follow these steps to become a commodity manager;
- Obtain a relevant bachelor’s degree: Ensure that you complete a bachelor’s degree in economics, finance, or business. A degree is the minimum educational requirement for this role. A four-year degree in supply chain management is another route to starting a career in the field. Depending on the institution or university, students may be required to undertake a six months industrial training program to learn relevant skills.
- Determine and select a specialty: You can choose to work with a specific commodity or different commodities at once. Since a commodity manager works in different sectors and fields, deciding and choosing a specialty or not is important.
- Get work experience: The easiest way of obtaining work experience is through an internship or apprenticeship in a relevant firm. Whether you intend to work with a particular commodity or several commodities, prior experience is necessary for employment. Another way of accumulating years of work experience is through entry-level positions. For example, you can begin your career as a buyer, purchasing manager, or assistant commodity manager to gain years of work experience before switching to a commodity manager’s position.
- Pursue additional certification and/or a license: While not compulsory, certification and license make you a better, smarter, and more employable candidate. It can also act as a trajectory to career growth and progression.
Where can a Commodity Manager Work?
These professionals gain employment in several sectors and industries. Some of the major employers of a commodity manager include engineering firms, construction companies, manufacturing companies, and quality assurance enterprises. A commodity manager can also find work in the healthcare industry, transportation firms, and mining sector. They are also hired by large corporations to work in their logistics units. There are opportunities for employment in the private sector as well; commodity managers can also be hired by the government and non-governmental organizations respectively.
Commodity Manager Salary Scale
A commodity manager enjoys a basic salary and additional perks. Being managerial workers, their average salary is relatively high. Differences and disparities exist in the salary structure of these professions due to gaps and variations in experience, employers, and location. Regardless, the average salary of a commodity manager has been estimated and approximated to be $105,000 per year. Hourly, a commodity manager makes an average of $50.48.