| Detail | For this role |
|---|---|
| Department | Procurement and Purchase |
| Level | Mid level |
| Reports to | Category Manager |
| Direct reports | None |
| Experience | 4 to 8 years buying a commodity or raw material |
Commodity Buyer job description template
Copy this job description, replace the text in square brackets and post it on your careers page or a job portal.
Job title: Commodity Buyer
Department: Procurement and Purchase
Reports to: Category Manager
Location: [City], [office, branch or site]
About the role
A Commodity Buyer buys one commodity group, such as steel, aluminium, resins or electronic components. They track the market and index prices for that commodity, time buying and contracts around price movements, and secure supply at the best total cost. The role reports to the Category Manager or Sourcing Manager. A good commodity buyer reads the market well, negotiates strong contracts, avoids buying at the peak, keeps the commodity supplied without excess stock, and protects margins when prices swing.
Key responsibilities
- Track market prices, indices and exchange rates for the assigned commodity and share a clear price view.
- Time buying and contract commitments around price movements to avoid buying at the peak.
- Negotiate spot and contract prices with commodity suppliers and lock terms when the market favours it.
- Forecast demand for the commodity with planning and production and cover it without excess stock.
- Maintain a panel of suppliers for the commodity to keep competition and supply security.
- Handle price escalation clauses and index linked contracts, and check claims against the published index.
- Watch for supply risk such as capacity, logistics and policy changes, and plan around it.
- Reconcile received quantities and prices against contracts and resolve differences with suppliers.
- Report commodity spend, price trend and cover position to the category manager each month.
- Keep contracts, price history and market notes for the commodity current and complete.
Requirements
- Graduate in engineering, commerce or economics
- Knowledge of the assigned commodity market
- A supply chain or trading course is an advantage
- 4 to 8 years buying a commodity or raw material
KRAs and KPIs for a Commodity Buyer
Key result areas for the appraisal form, each with a KPI you can measure every month or quarter.
| Key result area | How to measure it |
|---|---|
| Price performance | Buying price tracked against the market index and kept below the average |
| Supply security | No stockout of the assigned commodity during the year |
| Cover position | Forward cover held within the agreed range for the commodity |
| Contract accuracy | Index linked claims verified so no wrong price increase is paid |
| Supplier panel | At least two active suppliers kept for the commodity |
| Reconciliation | Quantity and price differences resolved within the target time |
Skills and tools
Tools used day to day: SAP MM, Commodity price feeds, MS Excel, e-auction tools, LME and index sources.
Reporting line and career path
Next roles: Category Manager, Strategic Sourcing Specialist, Sourcing Manager
Interview questions for a Commodity Buyer
- How do you build a price view for your commodity and act on it?
- When would you lock a long contract versus buying spot?
- A supplier claims a price rise on an index linked contract. How do you check it?
- How do you cover demand without carrying costly excess stock?
- What supply risks do you watch for in your commodity and how do you plan around them?
- Tell me about a time the market moved against you and what you did.
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What does a Commodity Buyer do?
A Commodity Buyer buys one commodity group such as steel or resin. They track market and index prices, time buying and contracts around price moves, negotiate with suppliers, cover demand without excess stock and manage supply risk. Their aim is the best total cost and steady supply through price swings.
What is the difference between a Commodity Buyer and a Category Manager?
A Commodity Buyer focuses on one raw material market: prices, timing, contracts and cover. A Category Manager owns a wider spend category and its strategy, supplier panel and savings. A commodity buyer often reports to a category manager and feeds market and price intelligence upward.
What skills does a Commodity Buyer need?
The role needs strong market analysis and price forecasting for the commodity, sound negotiation, and comfort with index linked pricing and contracts. Add demand cover planning, reconciliation and calm judgement when the market is volatile, since decisions on timing directly affect the buying cost.