A sourcing manager or a procurement manager is an executive in the logistics department of product and service-based companies who is responsible for procuring materials and managing the supply chain management effectively and economically. Anyone aspiring to land a job as a procurement manager must have a minimum bachelor’s degree in Economics and Business Administration. Additionally, the aspirants must be equipped with certain soft skills and technical skills required to become effective and efficient managers in the logistics industry. They need to have excellent research skills and networking skills to align with the productivity of the organisation.
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Who is a Sourcing Manager?
Any individual engaged in the role of evaluating, coordinating, and managing the procurement process for a business entity is known as the sourcing/procurement manager. In her/his/their career they have to build strong and valuable relationships with local and international vendors/suppliers and manufacturers to source goods and services. They have to work in close coordination with the marketing, product, technical and finance departments of the organisation.
Must Read: How to Become a Logistics Manager?
Steps to Become a Sourcing Manager
To become a sourcing manager in India, an individual must have a minimum of bachelor-level educational qualifications and different technical and soft skills. Given below are the education requirements and requisite skills for this profession:
Here is a step-by-step guide to becoming a sourcing/procurement manager in India:
Students in senior secondary schools must complete their Class 12 board or an equivalent examination from a recognised education board. He/she/they can be in the science, arts, commerce, or humanities stream. Students must score at least 50% in the 10+2 examination.
The next step is to appear for university-level entrance examinations that are conducted to enrol in a 3-4 year bachelor’s course. Some of the most popular entrance exams are:
- Jawaharlal Nehru University Entrance Examination (JNU EE)
- Common University Entrance Test (CUET)
- Aligarh Muslim University Entrance Examination (AMU EE)
- Indra Prastha University Combined Entrance Test (IP CET)
- Delhi University Joint Admission Test (DU JAT)
After qualifying for the entrance tests, candidates can opt for the below-mentioned undergraduate courses:
- Bachelor of Business Administration (BBA)
- BBA in Supply Chain Management and Logistics
- Bachelor of Economics
- Bachelor of Arts (BA) or BA (Hons.) in Economics
- Bachelor of Science (BSc) or BSc (Hons.) in Mathematics
After getting a bachelor’s degree in the aforementioned programmes, graduates can either join entry-level jobs in the logistics industry or opt for a master’s level programme. Students can opt for the following programmes:
- Master of Arts (MA) in Economics
- Master of Economics (ME)
- MBA in Logistics and Supply Chain Management
Also Read: MSc Logistics and Supply Chain Management
Individuals willing to pursue a career as a sourcing manager must have the following skills to excel in their careers.
- Communication skills
- Negotiation skills
- Decision-making skills
- Cost management skills
- Interpersonal skills
Roles and Responsibilities
The professional life of a sourcing manager involves lots of communication, negotiation, and decision-making process. Here are some of the key responsibilities of this professional:
- Design innovative sourcing strategies to meet the organisational goals and align with the profit objectives of the enterprise. To achieve these goals, this professional needs to control costs, limit inventory, ameliorate payment terms, and optimise the efficiency of the supply chain.
- Make decisions about optimum procurement methods. The decisions must be backed by technical knowledge about the concerned category. They must also ensure that they use state-of-the-art analytical methods that must include human resources, innovative financial measures and systems.
- Ensure that suppliers and customers use and implement innovative concepts, materials, and designs to increase the efficiency and productivity of the business. They also have to advise and implement business-specific changes.
- Devise and implement a strategic sourcing plan for global and local sources to accelerate sourcing operations.
- Draft contracts for purchasing guidelines.
- Work in conjunction with the marketing team, technical team, and engineering team to manage and supervise research projects.
- Identify and analyse the needs of consumers and weigh all sourcing options and then choose the best alternative.
- Work in sync with the global logistics team to ensure timely delivery of shipment.
- Assist product team in developing new products and ensure adherence to quality standards.
- Evaluate the quality of raw materials.
Also Read: Career in Material Management
The annual average salary of a sourcing manager in India is INR 11.3 lakh. The annual salary range of this professional is INR 2.8 lakh to INR 25.2 lakh. The estimated take-home salary per month for this managerial position is INR 80.5K to INR 82.6K.
This professional must have excellent communication, interpersonal, and negotiation skills. Additionally, the sourcing/procurement manager must have decision-making and cost-management skills.
As a sourcing/procurement manager, one has to design innovative sourcing strategies to meet the organisational goals and align with the profit objectives of the enterprise, make decisions about optimum procurement methods, assist the product team in developing new products, and ensure that suppliers and customers use and implement innovative concepts, materials, and designs to increase the efficiency and productivity of the business.
To become a procurement specialist, you must have a bachelor’s degree in BBA, BA Economics, or BSc Mathematics. You can become a procurement manager by working as a sourcing specialist for a few years or you have the option to join as a procurement manager after completing a master’s programme: MA in Economics, MBA in Logistics and Supply Chain Management, or Master of Economics.