Oct
8
The Role Of A Global Commodity Manager
Filed Under Blog | Comments Off on The Role Of A Global Commodity Manager
A global commodity manager is a key individual within the purchasing organisation. It is a complex role that requires a number of skills, qualifications and attributes.
A global commodity manager does more than simply buy commodities on a global basis. Instead the global commodity manager co-ordinates the procurement strategy for that commodity. This will involve an in depth understanding of the market, supplier sourcing, risk and performance management.
Due to the fact that the global commodity manager will be operating on a global basis, they will need to demonstrate a real understanding of the market, not just of their own locality, but globally, so the manager needs to be able to identify new opportunities and innovation and ensure that these are exploited.
The global commodity manager also needs to be able to minimise risk. In short this means that the manager has to develop an appropriate risk mitigation strategy through an appropriate supplier network maintaining continuity of supply whilst reducing risk within the supply chain as a whole!
In operational terms the manager will act as a conduit and liaise between the various manufacturers/suppliers and the procurement community. The manager is expected to support global suppliers, whilst not being hands on, but operating at a strategic level supporting the needs of the business.
The global commodity manager must be able to see exactly how the global and strategic procurement policy fits in to the overall company strategy. For this reason it is typically a senior position within the company and must fit in to all the goals and aims that the company has and the global commodity manager has to ensure that procurement drives the fulfilment of these aims. So it is an important role and one that should be viewed as critical, if the purchase and procurement of global commodities are to be kept down.
Qualifications:
The qualifications for a global commodity manager vary according to whether the company is an industrial company, a technological company or is manufacturing based. However, as a general rule, most commodity managers, especially global commodity managers will have at least a degree and some global experience specifically in strategic sourcing and or buying.
All global commodity managers have to show that they are able to lead and have the capacity to juggle several (metaphorical) balls in the air simultaneously, whilst ensuring that the small details are not overlooked.
Given the complexity of the role, the salary for this post is generally higher than a typically buyer and can represent the prestigious reward on the procurement career path however it does come with responsibility and more than a few challenges!
Oct
8
The Purchase Requisition Form in the procurement process plays an important role. It is a means whereby an employee of a company can request materials or equipment. Once the employee of the company has completed the Purchase Requisition and it has been authorised, they can then take it to the purchasing department for a Purchase Order to be created.
For Internal Use Only
The Purchase Requisition Order is only for internal use within an organisation. It is in effect a method of ensuring that supplies and spending are carefully controlled. The purchase requisition is a formal way of issuing notice that material is required. Usually someone has to authorise a requisition so there is a clear indication of who wanted the item and who said that it could be purchased. This is important in terms of being an audit trail. If for example goods were repeatedly being ordered that were not actually needed, then the Purchase Requisition Orders could be checked to ascertain who had actually said that it was ok to make the purchase. This safeguards the company from any rogue orders and is a good way of ensuring that only necessary items are ordered.
Electronic Requisition Forms
Some organizations utilize technology to manage requisitions and the requisition form is electronic and is simply a way of improving efficiency, with the form being completed online and then sent off to the relevant person in the purchasing department.
Clear Directions To Purchasing Department
Although the use of Purchase Requisitions may seem slightly bureaucratic, they are very useful, not just in terms of the audit trail, with accountability for orders being shown, but they also provide the purchasing department with very clear instructions about what is required, what the budget is, when it should be delivered together with possible sources of supply.
Often the Requisition will contain details of any cost codes that are required for budgeting purposes; so if an item is to be charged to a particular area of the budget then the purchasing department will be told which cost code to charge the items to, so it helps keep budgets up to date. Since this information will not be contained on the Purchase Order, it is a way of ensuring that the books are balanced and there are no over spends.
The Requisition should also contain details of the time scale for delivery, so if something is urgent, then this should be noted on the Requisition- it should not be assumed that the purchasing department will know that something is urgent, it is up to the person who is completing the form to make arrangements for the order to be treated as such.
Vital To Purchase Orders
Many organizations will not create a Purchase Order until they have actually had a Requisition Order; this is standard practice and ensures that everyone understands the processes involved. So the Purchase Requisition Order may be a humble, internal document, but in its own way it is actually quite important.