Commodity Manager

2 months ago

Southfield, United States ABC Technologies Full time

The Commodity Manager role in ABC plays a critical role working within the commodity procurement team to optimize strategic sourcing, develop and execute cost savings activity, and manage a global supply base to support ABC manufacturing operations. The role involves strategic planning, supplier relationship management, and cost optimization to ensure a reliable and efficient supply chain.

Budget Planning and Forecasting: Collaborate with procurement leadership and finance to develop annual procurement budget and forecast for assigned commodities. Analyze historical spending patterns, market trends, and demand forecasts to estimate future procurement needs and budgetary requirements accurately.

Cost Analysis and Negotiation: Conduct detailed cost analysis and benchmarking to identify opportunities for cost savings, value optimization, and process efficiencies within the commodity supply chain. Lead the negotiations on pricing, terms, and contracts with suppliers to secure competitive pricing, volume discounts, and favorable payment terms while maintaining quality standards and supply chain reliability.


Strategic Sourcing: Ensure new component sourcing of purchased components follows commodity strategy, in addition to meeting cost, quality and delivery requirements established by the program team. Condut detailed pricing analysis and supplier negotiations to ensure lowest total landed cost is achieved. Leverage new sourcings to provide savings opportunities to the organization.


Supplier Management and Performance Monitoring: Develop sourcing strategies to select suppliers based on factors such as cost competitiveness, quality, reliability, technical capabilities, and financial stability. Develop strategic relationships with key suppliers to drive continuous improvement initiatives, cost reduction programs, and value-added opportunities. Monitor supplier performance against established metrics, such as cost savings targets, quality standards, on-time delivery, and responsiveness, and take corrective actions as needed.

Value Engineering and Cost Reduction Initiatives: Work with cross-functional leaders to collaborate with suppliers, engineering teams, and other stakeholders to identify opportunities for value engineering, product optimization, and cost reduction through design innovation, material substitutions, and process improvements. Implement cost reduction initiatives, such as lean manufacturing practices, standardization efforts, and supply chain optimization projects, to achieve targeted cost savings and improve profitability.

Risk Management and Mitigation: Support supply risk initiatives to ensure continuity of supply at ABC plants. Assess and mitigate risks related to commodity price volatility, supply chain disruptions, geopolitical factors, and regulatory changes that may impact costs and procurement strategies. Develop risk mitigation strategies, such as hedging, inventory management, dual sourcing, and contingency planning, to minimize the impact of unforeseen events on cost and supply chain continuity.

Budget Performance Tracking and Reporting: Monitor and track procurement spending, cost savings initiatives, and budget variances against established targets and key performance indicators (KPIs). Prepare regular reports and presentations for senior management, highlighting budget performance, cost savings achievements, supplier performance, and strategic recommendations for continuous improvement.

Commodity Strategy Development. Develope and implement comprehensive strategies for specific commodities, aligning them with the overall business objectives of ABC. Consider market trends, cost structures, and technological advancements to create effective commodity strategies.

Supplier Identification and Management. Identify, evaluate, and select suppliers for the assigned commodities based on stringent criteria such as quality, cost, delivery capabilities, and capacity. Cultivate and manage strong relationships with key suppliers globally, fostering collaboration and ensuring a reliable supply chain.


Qualifications:


  • Bachelor’s degree in Business, Supply Chain Management, or a related field; MBA preferred.
  • Minimum 5-7 years of automotive purchasing experience at OEM/Tier 1 level.
  • Proven track record of success in global procurement, strategic sourcing, and supply chain management.
  • In-depth understanding of global markets, industry trends, and international business practices.
  • Strong cultural awareness and sensitivity to diverse customs, values, and communication styles.
  • Experience working with and managing teams from different cultural backgrounds.
  • In-depth knowledge of procurement best practices, strategic sourcing, and supply chain management.
  • Strong negotiation, contract management, and supplier relationship management skills.
  • Demonstrated ability to lead and develop high-performing teams.
  • Excellent communication and interpersonal skills.
  • Analytical mindset with the ability to make data-driven decisions.
  • Familiarity with relevant regulations and compliance requirements in the automotive industry.

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