When businesses seek to procure finished goods, raw materials or supplies, they often depend on commodity managers to make it happen. Whether a firm creates, produces or sells 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, which may also be known as purchasing manager or director, including job duties, required education and training, potential job opportunities and earnings. To begin with, aspiring commodity managers can jumpstart their career by enrolling in the online Master of Science (MS) in Supply Chain Management program from Florida Institute of Technology.
What Is Commodity Management?
All types of companies need key supplies, or commodities, to run their operations. For example, a clothing manufacturer may require commodities like cotton, buttons, zippers and thread to produce goods and operate an efficient business.
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.
So why does commodity management matter? Commodity management is critical to effective supply chain management (SCM) and running a profitable, stable business. It minimizes risk by ensuring a solid supply chain, and has the potential to maximize earnings through securing favorable prices and terms on purchases.
Commodity Manager Job Description and Responsibilities
Commodity managers use their in-depth knowledge of markets, suppliers and company requirements to maintain availability of 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 in collaboration with other logistics and warehousing SCM professionals to meet requirements without wasting valuable 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.
Where Can I Find Jobs in Commodity Management?
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.
Further, some organizations outsource specialized business activities, including SCM processes. As such, commodity managers may work for independent SCM firms that contract with other organizations to manage their SCM operations.
Education Preparation for Commodity Management Jobs
The qualifications for a commodity manager job will vary according to the type and size of a company. For entry-level positions, a bachelor’s degree and work experience are common requirements for purchasing managers, buyers and purchasing agents — the occupational category that would likely include commodity managers — according to the U.S. Bureau of Labor Statistics (BLS).
Upper-level positions such as commodity manager may require substantial experience and an advanced degree such as an MS in Supply Chain Management. These graduate degrees typically take an additional one to two years beyond the bachelor’s level, and can vastly expand one’s career opportunities in supply chain and logistics management.
Training, Other Qualifications and Advancement
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. Job applicants may distinguish themselves among job candidates by developing the following in-demand attributes:
- The ability to work independently and take on responsibilities
- Awareness of trends
- Negotiation and conflict resolution skills
- The ability to multitask in a fast-paced environment
- Decision-making and analytical skills
- Proficiency with required software and evolving technologies
Advancing in a commodity manager career typically requires additional work experience, an advanced degree or professional certifications. Some organizations may offer tuition assistance or reimbursement programs to employees seeking to advance their education.
Potential Salary for Commodity or Purchasing Manager Jobs
Salary potential varies depending on factors including location, education and experience. Prospective students should conduct independent research to determine actual earning potential.
Earnings are also determined by the specific industry, company and job title. For example, purchasing managers nationwide had a median annual salary of $139,510 in 2024, according to BLS data. While this level of compensation is substantial, purchasing managers in the professional, scientific and technical services industry earned a higher median salary of $163,560 per year, representing a significant wage premium relating to a specific area of work.
Interested in Pursuing a Career as a Commodity Manager?
Professionals who are interested in working for a global manufacturing company or a regional retailer can choose to pursue a rewarding career as a commodity manager. These professionals will need to acquire the specialized skillset and knowledge the career requires. Florida Tech’s online MS in Supply Chain Management can provide this expertise, preparing students for engaging, lucrative career opportunities in commodities and purchasing management.
Learn more about the online MS in Supply Chain Management program from Florida Tech.
