What does a Sourcing Manager do?
Sourcing managers analyze and direct the costs and expenditures related to a company's procurement. They source a company's strategic supply partners and develop sourcing policies. Sourcing managers also create cost estimates and forecasts for the procurement and negotiate reasonable and cost-effective contracts. They evaluate sourcing procedures, present improvement strategies for senior management approval, and analyze and calculate procurement costs and research and develop cost reduction strategies.
Sourcing managers drive purchasing decisions based on scenario analysis, market trends, and cost and negotiate contracts with key suppliers. They collaborate with the procurement department and identify and follow up with potential new suppliers. They conduct market research, create forecasts and cost estimates, and are responsible for hiring, training, and managing procurement department employees. They maintain strategic sourcing relationships, develop strong partnerships, and need a bachelor's degree in business, economics, finance, logistics, or related fields and at least four years of procurement experience in a related industry.
- Participate in the development of goals and budgets for area of responsibility.
- Negotiate contract modifications, follow-up quotations, revisions, terms and conditions with vendors.
- Responsible for all aspects of people and team leadership.
- Work with business partners to identify and drive Total Cost of Ownership (TCO) process improvements to reduce costs.
- Partner with all other elements of sourcing and procurement (Business Services, Financial Analysis and Reporting, and Business Relationship teams).
- Provide regular project status information to team members, including attending required meetings and follow-up on action items.
- Utilize standard project management tools and summary documents to track and communicate status of projects.
- Develop financial models to determine business case for deal.
- Identify and manage performance improvement dependencies and critical path issues.
- Assist in the establishment and administration of unit policies, procedures and systems.
- Establish the rules and methods to assess existing supplier performance, and the selection methods/criteria for new partners.
- Accounting principles, cost analysis, budgeting, forecasting, market and supplier research and analysis.
- Translate the strategy into vision, and communicate throughout the organization and with key external stakeholders to ensure alignment.
- Mitigate risk and promote compliance by establishing and maintain, valued relationships with internal stakeholders.
- Organize and lead effective meetings with internal and external stakeholders.
- Administer contracts in accordance with company and customer policies and procedures, provide interpretation and analysis of contract documents and review and evaluate customer requests for changes in or revisions of contracts that involve technical specifications, cost, or schedule impact on the company.
- Bachelor's or Graduate's Degree in business, business administration, engineering, science, or electrical engineering.
- Experience with R Language and RFP/RFI software and processes.
- Comfortable with talent sourcing and building a robust pipeline.
- Prior experience as a consultant.
- Strict attention to detail.
- An eye on problem solving and continuous improvement.
- Demonstrated leadership, work ethic, and negotiation skills.
- Experience with diversity sourcing.
Sourcing Manager Salaries
Average Base Pay
Sourcing Manager Career Path
Learn how to become a Sourcing Manager, what skills and education you need to succeed, and what level of pay to expect at each step on your career path.
Years of Experience Distribution
Sourcing Manager Insights
Bundl Technologies“Things were great to work there but I don't know what is the current situation.”
Hologic“Mediocre middle management; below average benefits; scant to nonexistent career paths; disorganized.”
Link Group“The best thing about working at Link is the management trusts on its employees and the great exposure to work and higher management.”
Hillsong Church“High expectations and not enough resources”
Redeure“2. They recognize and value each individual’s desire for career development and work to create world”
Karma Automotive“Bring a positive can do attitude and you will do well here and go far here.”
OYO“Good Salary and incentives are the best of this company”
Provincial Health Services Authority“Career development support is weak.”
Frequently asked questions about the role and responsibilities of a Sourcing Manager
- Demand Planner
- Supply Chain Manager
- Supply Chain Specialist
- Supply Chain Analyst