When businesses seek to procure finished goods, raw materials, or supplies, they depend on commodity managers to make it happen. Whether a firm is involved in creating, producing or selling goods and services, commodity management is an important link in the supply chain.
With this career guide, you can learn more about the commodity manager position, including job duties, required education and training, potential job opportunities and earnings.
According to national data published by the U.S. Bureau of Labor Statistics (BLS) in 2011, employment growth for the category that includes commodity managers is projected to remain stable through 2018. Prospective students should note that a steady job rate does not guarantee employment in the industry. You are encouraged to conduct independent research regarding actual job growth rates, which vary according to location, education and experience.
All types of companies need key supplies, or commodities, to run their operations. For a clothing manufacturer, the commodities required to operate efficiently might include cotton, buttons, zippers and thread. Commodity management is the approach to maintaining sufficient levels of these items throughout the usage cycle. Commodity managers help companies reach their goals by procuring supplies and ensuring their continuous flow through the supply chain.
Commodity management is important to running a profitable, stable business. It minimizes risk by ensuring a solid supply chain, and has the potential to maximize earnings through favorable prices and terms on purchases. Commodity managers use their in-depth knowledge of markets, suppliers and company requirements to maintain steady, cost-effective supplies of needed materials. They are usually responsible for establishing secure and dependable relationships with suppliers. They also arrange logistics and facilitate balanced inventory levels to meet requirements without wasting valuable warehouse space or resources.
Commodity managers monitor market conditions and make purchases when prices are favorable. They study trends to identify and solve potential supply chain problems, and they continually seek new opportunities for innovation. Other typical duties for this position include preparing contracts and purchase orders, resolving vendor disputes, and writing reports for management and other stakeholders.
A wide range of industries depend on skilled commodity managers to optimize performance and profits. Some possible areas of opportunity include global retailers, manufacturing and distribution companies, information technology firms, medical device manufacturers, and aerospace and defense firms.
The qualifications for a commodity manager job will vary, according to the type and size of a company. As a general rule, most commodity managers will have a college degree and work experience.
Additional qualifications for landing a commodity manager job may include training or experience in sourcing or buying. Employers will also look for position-related attributes, including strong presentation, verbal and written communication skills, and creative problem-solving abilities. You may distinguish yourself among job candidates by developing the following in-demand attributes:
Advancing in a commodity manager career typically requires additional work experience, an advanced degree or professional certifications. Some employers may offer tuition assistance that could enable you to earn an advanced degree.
According to a 2010 national survey conducted by the U.S. Department of Labor, the median annual salary for commodity managers was $95,070. Because salary potential may vary depending on location, education and experience, prospective students are encouraged to conduct independent research to determine actual earning potential.
Whether you’re interested in working for a global manufacturing company, a regional retailer or something in between, the right education and skill set can help you launch a rewarding career as a commodity manager. Start by using this career guide to plan your path to success and consider earning your Masters in Supply Chain Management.
* Prospective students are encouraged to conduct independent research regarding actual job growth rates, which vary according to location, education and experience.