Functional Role of a Commercial Manager is to lead the entire commercial functions of the plant of a company. Duties of Commercial Manager include strategic sourcing process, cost reduction metrics, logistics operations, Vendor Development & Management, Procurement planning, financial performance etc.
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Responsibilities of Commercial Manager:
- Steering initiative in managing the entire commercial affairs of the company including planning, raw material purchase and accounts
- Making effective use of cost analysis tools in support of strategic sourcing process, procurement costs, cost reduction metrics and bottom-line performance indicators.
- Adhering to compliance with statutory provisions relating to GST, transportation, etc.
- Identifying requirements of raw materials i.e sourcing, purchase, storing, feeding, monthly PV etc with other inputs in coordination with project/green field project sections and driving procurement initiatives to arrange materials, on time, to support projects
- Handling price negotiation, technical discussions with vendors & release of purchase order.
- Negotiating with Vendors & Transporters for procurement of material at best price
- Spearheading the following functions Conducting detailed account analysis and corporate month-end processing and reporting
- Heading the logistics operations while streamlining the system and procedures for effective inventory control and ensuring ready availability of materials to meet the requirement
- Scrutinizing overall legal compliance and maintenance of all statutory records of Central Excise, Service Tax and submission of returns
- Administering calculation of GST, VAT for bill of materials as well as followed up with customers for collection of Form C, TDS certificates and payments in line with Terms & Conditions of the Purchase Order.
- Shouldering responsibility for Debtors, Ledgers & Creditors Reconciliation at every quarter end and receiving no due certificate from their end on yearly basis; planning for liquidation of Debtors, GST Registration, and VAT Registration.
- Establishing healthy and cooperative working environment within organization
- MIS presentation to the top management on financial performance, flux analysis, Cash flow, product yield/Recovery
- Controlling and reviewing month-end closing, CAPEX & OPEX accounting, AR/AP management, ageing analysis & minimizing overdue. Inventory Controls, Addressing non-moving / slow-moving inventory
- Participates in policy and procedure development (Like Development of Purchase Policies, Contract for Freight Forwarding, Inbound Logistics policies, Inventory Management policies and Lead time Policies etc) to help ensure accuracy, consistency and clarity.
- Edit policies, procedures and other materials for manuals through extensive analysis Like Lead time analysis, Inventory Policies for Capital, Spares, Raw Materials etc, and Audit handling.
- Assists department personnel in identifying conflicting policies and procedures to resolve conflicts and revise manuals accordingly for smooth flow of operation.
- Reducing Cost and increasing standard of products/services by proper implementation of Methods and procedures through Standard Operational Procedures.
How to become a Commercial Manager:
Educational Qualification requirement to become a Commercial Manager is Graduate or Bachelor degree from any of college/university in Commerce. Depending the industry, the companies decide the required educational qualification like in engineering, cement, iron and steel, petroleum industry companies look for diploma/degree engineer in mechanical engineering; in chemical industry they look for diploma/degree engineer in chemical engineering etc. Diploma or post graduate diploma in Material Management (MM) provides an added advantage. The person needs to work in purchase department for at least 5 to 10 years to become a Commercial Manager.
Technical Skills Required for Commercial Manage:
- Strategic Planning & Leadership
- MIS Management
- Cost Focus
- Financial Statement
- GST knowledge
- Budgeting & Forecasting acumen
- Audit & Compliance expertise
- Procurement Management
- Logistics knowhow
- Good at Liaison and Relationship management
Software skills Required for Commercial Manage:
ERP/SAP (MM module)
MS-Word, MS-Excel, MS-Power Point
Soft skills Required for Commercial Manage:
- Strong negotiating skills essential for fixing correct price and other terms of contract.
- Excellent Verbal communication skills, both written and oral.
- Strong communicative and interpersonal skills essential for managing people.
- Self-motivated, hardworking. Always keen on constant improvement.
- Goal Oriented mind set up.
What is the Job Opportunity of Commercial Manage in the industry?
Commercial Manager are required and hired in every manufacturing company in the industry. So, there is always a huge demand of Commercial Manager.
Salary of Commercial Manage (in India):
Salary of Commercial Manager in India ranges from 10 Lacs Rupees to 50 Lacs of Rupees per annum depending upon the Experience, Expertise, Industry, Business volume, procurement ticket size etc.
Yes, he needs to work in Purchase/Commercial department of a manufacturing company.
There are low demands of Commercial Manager abroad especially in Middle east countries (Gulf), South Africa, Canada but the incumbent must know the respective company acts and rules of that country.