Commodity Manager (Direct Materials)

Job Summary

The Commodity Manager – BOM Materials is responsible for the strategic sourcing and procurement of Bill of Materials (BOM) components, ensuring cost efficiency, quality, and supply continuity. This role involves managing supplier relationships, negotiating contracts, and optimizing the supply chain for direct materials used in production. The ideal candidate will collaborate with engineering, operations, and finance teams to support product development and manufacturing initiatives.

Key Responsibilities

Sourcing & Procurement

1. Develop and implement sourcing strategies for BOM materials, including raw materials, components, and sub-assemblies.
2. Identify and qualify new suppliers, ensuring alignment with cost, quality, and delivery requirements.
3. Conduct supplier negotiations to optimize pricing, terms, and lead times.
4. Manage RFQ (Request for Quotation) and RFP (Request for Proposal) processes for strategic sourcing initiatives.

Supplier & Contract Management

1. Build and maintain strong supplier relationships to enhance collaboration and performance.
2. Monitor supplier KPIs such as cost, quality, lead time, and reliability.
3. Conduct regular supplier audits and performance reviews to drive continuous improvement.
4. Manage contract lifecycle, ensuring compliance with procurement policies and legal guidelines.

Cost Optimization & Budgeting

1. Develop and execute cost-saving initiatives to optimize the total cost of ownership (TCO).
2. Conduct cost analysis and market benchmarking to identify cost reduction opportunities.
3. Provide accurate forecasting and budgeting for BOM material procurement.

Risk Management & Compliance

1. Identify and mitigate supply chain risks, including raw material shortages, geopolitical risks, and pricing fluctuations.
2. Ensure compliance with company procurement policies, regulatory requirements, and industry standards.
3. Work with legal, finance, and quality teams to ensure supplier contracts meet corporate and regulatory requirements.

Collaboration & Cross-functional Support

1. Work closely with engineering and product teams to align procurement strategies with new product introduction (NPI) and production schedules.
2. Support manufacturing teams in ensuring material availability and mitigating supply chain disruptions.
3. Partner with finance teams to analyze cost impacts and improve financial efficiencies.

Qualifications & Skills

1. Bachelor’s degree in Supply Chain Management, Engineering, Business Administration, or a related field.
2. Minimum 15 years of experience in commodity management, procurement, or supply chain management, preferably in BOM materials.
3. Strong knowledge of sourcing strategies, contract negotiations, and supplier management.
4. Experience in procurement of raw materials, electronic components, mechanical parts, or related materials.
5. Proficiency in procurement systems, ERP software, and data analytics tools.
6. Strong negotiation, analytical, and problem-solving skills.
7. Ability to work in a fast-paced environment and manage multiple projects simultaneously.

Preferred Qualifications

1. Experience in global sourcing and supplier management.
2. Professional certifications such as CPSM, CSCP, or equivalent.
3. Knowledge of lean supply chain principles and cost optimization strategies.

Work Environment & Conditions

1. On-site with occasional travel for supplier visits and audits.
2. Collaboration with cross-functional teams across multiple locations.