What is a strategic sourcing manager?

What is a Strategic Sourcing Manager?

A strategic sourcing manager is responsible for overseeing the end-to-end sourcing operations of a company. They work to identify and develop relationships with suppliers, negotiate contracts, and manage the procurement process. The goal of a strategic sourcing manager is to ensure that the company is getting the best possible value for its money.

Responsibilities of a Strategic Sourcing Manager

The responsibilities of a strategic sourcing manager can vary depending on the size and industry of the company. However, some common responsibilities include:

Key Facts

Responsibilities:
- Evaluate purchasing decisions on supply, outsourcing, and procurement.
- Find the most cost-efficient vendors and suppliers.
- Negotiate rates and maintain proposed budgets.
- Ensure all sources are economically feasible.
Vendor Partnerships:
- Build value-driven vendor partnerships.
- Focus on risk management, reliability, and cost-effectiveness.
- Conduct structured negotiation processes for supplier negotiations and contracting.
- Coordinate with internal stakeholders to define material, quality, and service requirements and standards.
- Nurture vendor partnerships and track key performance indicators (KPIs) and goals.
Market Analysis and Benchmarking:
- Evaluate new sources, methods, and vendors to ensure a reliable supply of materials.
- Study market intelligence and conduct frequent market analysis and benchmarking.
- Anticipate price fluctuations and make informed decisions based on market trends.
Efficiency and Cost Control:
- Manage processes, create efficiencies, and control costs using ERP systems and software tools.
- Analyze and calculate costs of procurement and suggest methods to decrease expenditure.
- Optimize sourcing procedures to attain maximum efficiency.
Skills and Qualifications:
- Typically requires a bachelor’s degree.
- Extensive knowledge of the function and department processes.
- Strong project management and leadership skills.
- Ability to negotiate and sustain networking relationships.
- Comfortable with figures and data analysis.
- Solid judgment with the ability to make good decisions.

Evaluating purchasing decisions on supply, outsourcing, and procurement
Finding the most cost-efficient vendors and suppliers
Negotiating rates and maintaining proposed budgets
Ensuring all sources are economically feasible

Vendor Partnerships

Strategic sourcing managers also play a key role in building and maintaining relationships with vendors. They work to develop value-driven partnerships that focus on risk management, reliability, and cost-effectiveness.

Building value-driven vendor partnerships
Focusing on risk management, reliability, and cost-effectiveness
Conducting structured negotiation processes for supplier negotiations and contracting
Coordinating with internal stakeholders to define material, quality, and service requirements and standards
Nurturing vendor partnerships and tracking key performance indicators (KPIs) and goals

Market Analysis and Benchmarking

Strategic sourcing managers also need to be aware of the latest market trends. They conduct market analysis and benchmarking to identify opportunities to save money and improve the efficiency of the procurement process.

Evaluating new sources, methods, and vendors to ensure a reliable supply of materials
Studying market intelligence and conducting frequent market analysis and benchmarking
Anticipating price fluctuations and making informed decisions based on market trends

Efficiency and Cost Control

Strategic sourcing managers are also responsible for managing costs and improving efficiency. They work to identify and implement process improvements that can save the company money.

Managing processes, creating efficiencies, and controlling costs using ERP systems and software tools
Analyzing and calculating costs of procurement and suggesting methods to decrease expenditure
Optimizing sourcing procedures to attain maximum efficiency

Skills and Qualifications

Strategic sourcing managers typically have a bachelor’s degree in business administration, supply chain management, or a related field. They also have several years of experience in procurement or a related field.

Typically requires a bachelor’s degree
Extensive knowledge of the function and department processes
Strong project management and leadership skills
Ability to negotiate and sustain networking relationships
Comfortable with figures and data analysis
Solid judgment with the ability to make good decisions

Conclusion

Strategic sourcing managers play a vital role in the success of any organization. They work to ensure that the company is getting the best possible value for its money, while also building and maintaining relationships with key suppliers.

Sources

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