Strategic Sourcing Manager Job Description, Skills, and Salary
Get to know about the duties, responsibilities, qualifications, and skills requirements of a strategic sourcing manager. Feel free to use our strategic sourcing manager job description template to produce your own. We also provide you with information about the salary you can earn as a strategic sourcing manager.
Who is a Strategic Sourcing Manager?
The strategic sourcing manager manages vendor relationships. These relationships are used together with data analytics to solve problems and reach business goals.
The role is focused on strategic sourcing principles. They consider all factors that can impact a vendor’s overall worth. They consider, for example, the cost and quality of the product or service. However, they also consider the benefits and risks of partnering with vendors, such as their reliability, long-term compatibility, and intangible value.
Businesses and enterprises of any description often require external vendors for materials, products, and support to fulfill their primary functions. It is important to determine how these goods and services will get acquired, and what terms they will be purchased. Businesses or other organizations may hire a sourcing manager to manage such purchasing and contracting functions. Although the exact scope of this role will vary according to the company that employs you, the typical sourcing manager will identify the right suppliers, coordinate transportation, and forecast future company needs.
Every sourcing manager has the primary goal to obtain the best quality raw materials, goods, or services at the lowest possible price. Monitoring market conditions and industry trends is essential for this. Materials inventories, global demand, and the quality of vendors are just a few of the factors sourcing managers need to consider. A savvy sourcing manager must keep abreast of supplier innovations, visit vendors’ facilities, and take part in trade shows to make the best acquisition decisions. Contract negotiations can begin once preferred providers are identified.
It’s not unusual for strategic sourcing managers in a company to have more than one job. Many sourcing professionals have management responsibilities in the areas of marketing, logistics, forecasting, and manufacturing.
There is potential for growth beyond the traditional job title of sourcing manager. This means that professionals in this field need to continue their education and obtain specialized credentialing. There are many certifications in the sourcing field, including certified professionals in supply management and certified professional purchasing managers. The “Accredited purchasing practitioner” position is also available.
Many corporate and government entities employ sourcing managers. This means that they have a variety of work environments. Traditional employees and those who work in traditional organizations often have more conventional office environments. Large manufacturers often require their employees to travel abroad regularly to find the best materials at the lowest price. It may also be necessary for sourcing managers to interact with other units of the corporation or organization to determine which goods, raw materials, or external assistance are most beneficial to the company’s overall goals. To ensure that the acquisitions they manage are to the employer’s advantage and yield greater efficiency and profit, sourcing managers must have a solid understanding of contract law and negotiation techniques.
The majority of strategic sourcing managers work within the operations and finance departments. As mentioned, however, the exact hierarchy of roles can vary greatly between businesses.
For successful strategic sourcing managers, there are many opportunities to rise. The role requires a deep understanding of business strategy and big-picture objectives. They also benefit from working closely with stakeholders and executives. They are naturally able to move up because of their experience and visibility. Many go on to become senior strategic sourcing managers, directors of sourcing strategy, or vice-presidents of strategic sourcing.
Strategic Sourcing Manager Job Description
Below are the strategic sourcing manager job description examples you can use to develop your resume or write a strategic sourcing 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 strategic sourcing manager include the following:
- Hiring, training, and supervising new procurement personnel
- Implementing and developing a company’s procurement procedures and policies
- Negotiating and creating supplier agreements
- Monitoring suppliers to make sure they adhere to contract terms and conditions
- Talking to suppliers about defective goods and low-quality products, and then negotiating for corrective actions
- Running tenders, assessing bids, and making recommendations based on technical and commercial factors
- Negotiating and agreeing on contracts, while monitoring the quality of service.
- Keeping contract files safe and keeping them handy for future reference
- Establishing and maintaining strong relationships with suppliers both new and old
- Managing and motivating a group of procurement staff
- Liaising with suppliers, manufacturers, and internal teams, such as supply chain planning, marketing, sales, and IT.
- Developing strategies to ensure that supplier performance and cost savings targets are met or exceeded
- Valuing for Money reviews of existing arrangements and contracts should be done
- Ensuring the security and sustainability for essential products and services sources
- Forecasting price trends and their effect on future activities
- Giving presentations on market analysis and potential growth
- Developing and implementing a procurement plan
- Analyzing data and creating reports and statistics about spending and saving
- Making sure suppliers know your business goals
- Participating in trade shows and meetings
- Keeping up-to-date with the latest trends, regulations, and technology that could impact your business
- Training junior staff members.
Other important tasks are:
- Developing procurement policies
Optimize the procurement strategy of your business by analyzing and optimizing it to align with business goals. Supervise e-procurement initiatives and digital transformation.
- Facilitate collaboration with stakeholders and within your teams
To understand your business needs, you should partner with executives and department heads as well as stakeholders. Next, determine the requirements, scope, and criteria for procurement projects.
- Manage vendor selection
Use RFx tools for strategic sourcing. Assist in supplier selection by leading initial market research and creating vendor profiles. In a digital RFP management platform, create, issue, and manage RFPs. You will manage the evaluation of proposals and the final vendor selection.
- Establish ongoing relationships with vendors
Use best practices in vendor management during negotiation, contracting, and renewal. Conduct regular supplier risk assessments and vendor performance evaluations.
Qualifications
You will be able to find a position as a strategic sourcing manager if you have the right education, training, certifications, and skills.
Education
Strategic sourcing managers are from many backgrounds and hold bachelor’s degrees. These can include business, economics, logistics, procurement management, and supply chain management. A Master’s degree in Procurement Management is also available to some candidates.
Training
Most employers require candidates to have at least five years of experience in strategic sourcing. Candidates who feel they would benefit from additional training can enroll in courses on strategic sourcing management.
Certification
These professionals have many certification options. The employer will decide if certification is required. Professional certification can help you stand out from your competitors, even if it’s not required. There are several certifications available:
- Certification as a Certified Purchasing Professional
CPP certification is an entry-level qualification by the American Purchasing Society. However, CPP certification can only be obtained by candidates who have at least two years of experience in purchasing. The society will contact applicants’ coworkers and suppliers to get feedback about their professional conduct as part of the evaluation process.
This allows the association to assess the candidate’s maturity and ethics. A candidate must pass this step to be eligible for the Preparation For Certified Purchasing Pro Exam. This online course lasts three weeks. This qualification must be renewed every two years by non-members, while members need to do it every five years.
Certification as a Certified Professional Purchasing Manager
This American Purchasing Society qualification is specifically designed for managers. Before applying for the CPPM certification, applicants must have received their CPP certification. You will need to complete a three-week online course called “Preparation For the Certified Professional Purchasing Manager Examination” and pass the exam to obtain this qualification. Candidates must update their CPP certification every two to five years depending on whether they are a member.
Essential Skills
- Research
The ability to research skills allows strategic sourcing managers to access market information, costs, and risk management assessments. Strategic sourcing managers can also evaluate the advantages and disadvantages of purchasing decisions, often to predict future outcomes and to find ways to increase capital. Before purchasing new materials, they may manage the search for new suppliers and companies.
- Data analysis
They often analyze past and future departmental purchases to guide their decisions, minimize potential risks and predict future demand. The strategic sourcing managers can translate data into illustrations figures such as tables, charts, and spreadsheets and present the data in meetings. They may also communicate with other department executives about future purchases plans or decisions.
- Management of relationships
Effective relationship management skills are important as strategic sourcing managers often interact with multiple people. They might communicate their resource needs to staff to get data and feedback about previous purchases. They can improve their efficiency within the department by learning how to communicate and manage relationships. This skill can also be maintained by managing relationships with suppliers and external resources. They can mitigate any outside problems by working efficiently with clients and finding and onboarding new clients
- Forecasting available
The ability to forecast the future can be helpful for strategic sourcing managers who may have to purchase items according to their marketing forecasts. They can use this information to determine when to purchase a product and assess the economic environment. If a department has surplus capital, it might be a good idea to purchase multiple materials in advance.
- Risk management
Effective risk management skills are essential for strategic sourcing managers to predict, manage, and avoid any risk situation within their department. They might manage risk by selecting company-aligned clients and tracking investments. Understanding pricing is one way they can do this. They also know that strategic sourcing managers need to be skilled in risk management. This is because they can help with decision-making and create a functional workplace. They can improve their policies by staying current and evaluating existing risk practices.
- Sustainability
To repurchase materials from a department that produces or tests products, strategic sourcing managers must also have and use sustainability skills. A strategic sourcing manager might ensure that each department produces and tests the required amount of material each month if they have a monthly quota. If they anticipate a higher number of items within a given time, purchasing managers might place surplus orders for materials. To understand when goods may be required, they practice sustainability management. They also know when surplus quantities can be used to buy them.
- Marketing globally
The degree of global marketing skills required by purchasing managers depends on their company or department. Even if the department does not require global marketing plans to be successful, strategic sourcing managers can foster innovative relationships with suppliers around the globe. A strategic sourcing manager’s ability to communicate effectively with international suppliers can be aided by skills such as cultural awareness and localization.
- Financial skills
A strategic sourcing manager can use their financial skills to manage supply requirements for one or more departments every day. The strategic sourcing manager may devise strategic ways to make sure that the company’s finances are used in a way that is beneficial for the company. They may seek out alternative suppliers, take advantage of supplier discounts, or buy surplus material in low-price seasons. By purchasing only materials that are either price advantageous or urgently needed, strategic sourcing managers can ensure efficient budget use.
How to Become a Strategic Sourcing Manager
Sometimes these professionals come from different backgrounds such as engineering, finance, and economics. These are some steps to consider if you’re a student interested in this career.
- Obtain a bachelor’s degree
Employers expect a bachelor’s degree to be an entry-level requirement for most jobs. While a bachelor’s degree does not necessarily mean you will be hired, it is a good idea to have one if you are competing with other applicants for the same position.
- Gain experience
Before employers will consider your application, you’ll need to have a minimum of a few years of experience in sourcing management. You could consider a junior position in procurement, such as a buyer or procurement officer, to gain as much experience as possible.
- Find a mentor
Mentorship is one of the best ways for you to learn in your field. Ask someone who is in a higher position than you to mentor you. You could offer to help your mentor in the workplace in return for their expertise and knowledge.
- Get certified
A professional certification can help you stand out from your peers in the profession. Many certifications can be obtained in procurement. These include a Certified Supply Chain Professional qualification and a Certified Purchasing Professional qualification.
- Participate in industry events
You can improve your career as a procurement professional by staying current with the latest trends. Also, it is a good idea to attend trade shows, meetings, and conferences to expand your professional network.
Where to Work
A strategic sourcing manager typically works 40 hours a week and is a full-time job. The job is office-bound, except visiting suppliers and attending trade shows and conference conferences. There are many industries and business sectors that strategic sourcing managers can work in.
They include:
- Management departments of corporations and companies
- Federal executive branches
- Wholesalers for merchants
- Local governmental departments
Strategic Sourcing Manager Salary Scale
The average salary in the United States is $83,586 annually