What does a commodity manager do?

A commodity is raw material extracted from the earth, like gas, oil, crops, or minerals. These are geographically dispersed which encourage trading between countries or regions. The market price is driven by supply and demand. This brings into the dynamics of geopolitics which will influence supply that drives market prices. In a fairly stable environment supply is secure, the prices tend to be economical, unlike in a turbulent environment the price will be high due to supply risk. A commodity manager may enter in a future contract to secure supply for the future based on current market value with the supplier. The supplier may include a force majeure clause in the contract in a case of unforeseen future disaster that may prevent supply.

In supply chain management, a commodity often refers to a tangible, fungible, and standardized good that is traded in bulk. These goods are typically raw materials, agricultural products, energy resources, or basic industrial materials. Examples include: Oil and gas: Crude oil, natural gas, gasoline, diesel, etc. Metals: Iron ore, gold, silver, copper, aluminum, etc. Agricultural products: Grains like wheat, corn, soybeans, rice, cotton, etc. Livestock: Cattle, pigs, chickens, etc. And another term in SCM we are also called who is managing in term of purchase and procurement that team is also called as Commodity..

A commodity is a raw material or primary product that can be bought and sold, like steel, Electronic components, or oil. It’s often standardized and interchangeable, making it crucial for cost management in supply chains.

In very simple words, A commodity is a basic good used in commerce that is interchangeable with other goods of the same type. Examples include natural resources like oil, metals, and agricultural products like wheat or coffee. Commodities are typically traded on specialized markets and their prices can fluctuate based on global supply and demand.

A commodity manager in SCM plays a crucial role in overseeing the procurement, sourcing, and overall management of specific commodities within a supply chain. They're responsible for ensuring the reliable and cost-effective flow of these commodities to meet the needs of the organization. Here's a deeper dive into their responsibilities: 1-Sourcing and Procurement 2-Inventory Management 3-Logistics and Transportation 4-Cost and Budget Management

Well defined , the deal with commodities ensuring the same is sourced at reasonable prices and sustainably factoring in quality and strict compliance to procurement rules

A Commodity Manager is responsible for overseeing and managing the procurement of commodities for a company. This involves tasks like negotiating contracts, managing supplier relationships, and monitoring market trends. For example, a Commodity Manager in a manufacturing firm might negotiate contracts for steel, ensuring the company gets the best price and quality, while also managing risks associated with price fluctuations.

O Gestor de Commodities ou Purchasing Commodity manager é a pessoa que viabiliza contratos de compra e venda, promovendo o encontro entre o vendedor e o comprador que podem estar no mesmo país ou n?o. é o profissional que possui o network para conectar a cadeia de produ??o à indústria.

A commodity manager oversees the sourcing, procurement, and management of specific goods or materials crucial for a company's operations. They focus on cost, quality, and supplier relationships to optimize supply chain efficiency.

I couldn't agree more. Most essential are procurement, negotiation, inventory management and logistics skills to perform highly in the role of commodity manager

A successful commodity manager needs a blend of hard skills (technical knowledge and abilities) and soft skills (interpersonal and behavioral strengths) to navigate the complex world of sourcing, managing, and trading commodities. Here are some key skills to excel in this role: 1-Supply Chain Management 2-Financial Analysis 3-Market Knowledge 4-Data Analysis 5-Negotiation Skills 6-Project Management 7-Communication Skills 8-Interpersonal Skills 9-Problem-Solving Skills 10-Time Management 11-Leadership 12-Adaptability and Resilience 13-Knowledge of relevant software 14-International business experience 15-Risk management

To be a successful commodity manager, you need strong analytical skills, negotiation prowess, market knowledge, and supplier relationship management. Proficiency in procurement software and supply chain analytics is also crucial.

Key skills include Negotiation, Analytical Skills, Risk Management, Supplier Relationships, and very important strong Communication skills.

-Career Growth: This role often offers significant opportunities for career advancement and professional growth. -Market Impact: You play a crucial role in shaping the procurement strategy of your company, directly impacting its bottom line. -Dynamic Environment: The role is dynamic and challenging, as the commodity markets are constantly changing.

As a commodity manager, you gain strategic influence, develop deep market insights, and have a direct impact on cost savings. The role offers strong career growth and the satisfaction of driving business efficiency.

Being a commodity manager comes with its fair share of challenges, alongside the many benefits we discussed earlier. Here are some of the key hurdles you might encounter in this dynamic and demanding field: 1-Market Volatility and Risks 2-Demanding and Stressful Environment 3-Technical and Operational Challenges 4-Personal and Career Challenges Despite these challenges, the field of commodity management offers significant rewards for those who thrive in challenging environments and enjoy intellectual stimulation. By developing strong skills, embracing agility, and managing stress effectively, you can navigate these hurdles and build a successful career in this exciting and dynamic domain.

Commodity managers face fluctuating market prices, supply chain disruptions, and intense supplier negotiations. Balancing cost, quality, and availability requires agility and strategic foresight.

-Market Volatility: Commodity prices can be highly volatile, making the job stressful at times. For example, sudden changes in oil prices and disruptions in trade routes can significantly impact procurement strategies. -Global Complexity: Dealing with global supply chains can be complex, especially when considering different regulations, cultures, and market conditions. -Risk Management: Balancing cost-saving with quality and ensuring supply chain resilience can be challenging.