Procurement Manager – Oleoresins & Oleochemicals Industry

Company Description

Bio Pharma Laboratories Pvt. Ltd., headquartered in India, is a leading manufacturer and exporter of high-quality natural fatty acids, tocopherols, Dimer Acid, and squalene derived from soya and sunflower sources, Phytosterols. With decades of expertise in the chemical and nutraceutical industries, we are committed to innovation, sustainability, and excellence in delivering top-tier ingredients for human and animal nutrition, pharmaceuticals, and cosmetics.

Department: Supply Chain / Procurement Reports To: Director of Operations. Location: Hyderabad Employment Type: Full-Time

Job Summary

The Procurement Manager is responsible for strategically sourcing and managing the procurement of oleochemical raw materials including deodorized distillates, fatty acids, distilled fatty acids, dimer acids, tall oil derivatives, glycerine, and related oleochemical intermediates. The role ensures uninterrupted supply of critical inputs at optimal cost and quality, while managing supplier relationships across refining, distillation, and oleochemical manufacturing segments globally.

Key Responsibilities

Sourcing & Category Management

• Lead procurement of key oleochemical raw materials including:
• Deodorized Distillates (soybean, sunflower, palm, rapeseed/canola)
• Fatty Acids (stearic, oleic, lauric, palmitic, caprylic/capric)
• Distilled Fatty Acids (DFA single and mixed chain)
• Dimer Acids & Trimer Acids
• Tall Oil Fatty Acids (TOFA) & Rosin
• Hydrogenated Fatty Acids
• Crude & Refined Glycerine
• Methyl Esters & Biodiesel Co-products
• Develop and manage a diversified supplier base across domestic and international markets including South East Asia, Europe, and the Americas.
• Evaluate and onboard new suppliers through technical assessments, plant visits, and capability audits.

Market Intelligence & Price Risk Management

• Continuously monitor global oleochemical and vegetable oil markets, including palm oil, soybean oil, tallow, and tall oil commodity trends on exchanges.
• Track feedstock price movements, refinery capacities, seasonal availability, and geopolitical factors affecting supply.
• Provide regular price forecasting and market intelligence reports to senior management.
• Implement hedging or forward buying strategies in coordination with finance to manage price volatility and exposure.

Negotiation & Contracting

• Lead commercial negotiations on pricing, payment terms, delivery schedules, and volume commitments with refiners, oleochemical manufacturers, and trading companies.
• Draft, review, and manage procurement contracts, spot purchase agreements, and long-term supply agreements (LTAs).
• Establish price benchmarking frameworks using market indices (ICIS, Platts, Bloomberg) as reference points.

Supplier Relationship Management

• Build and sustain strategic partnerships with oleochemical producers, refineries, and commodity traders globally.
• Conduct periodic supplier performance reviews covering delivery reliability, quality consistency, and responsiveness.
• Develop alternative and backup supply sources to mitigate single-source dependency and supply disruption risks.

Quality & Technical Compliance

• Work closely with QA/QC and R&D teams to define and enforce material specifications such as:
• Acid value, iodine value, saponification value
• Color (Gardner/Lovibond), moisture content, free fatty acid (FFA) levels
• Dimer content (%), distillation range, and purity grades
• Manage non-conformances, rejection handling, and corrective action plans with suppliers.
• Ensure all materials comply with applicable industry standards (AOCS, ISO, REACH, RoHS, food-grade/industrial-grade classifications as applicable).

Procurement Planning & Inventory Optimization

• Develop monthly and quarterly procurement plans aligned with production schedules, safety stock norms, and demand forecasts.
• Optimize inventory levels to balance working capital efficiency against supply continuity needs.
• Coordinate with production planning and warehouse teams to prevent material shortages or excess stock situations.

Cost Optimization & Savings Initiatives

• Identify and implement cost reduction opportunities through supplier consolidation, alternative sourcing, grade substitution, and logistics optimization.
• Track and report procurement savings against defined targets.
• Drive value engineering initiatives in collaboration with R&D and production teams.

Team Leadership & Cross-functional Collaboration

• Lead, mentor, and develop the procurement team.
• Collaborate closely with R&D, production, finance, sales, and supply chain teams to align procurement strategy with business objectives.
• Support new product development by identifying and qualifying raw material sources for R&D trials.

Key Skills & Competencies

• Strong knowledge of oleochemical value chains from vegetable oils and animal fats through to fatty acids, dimer acids, distillates, and derivatives
• In-depth understanding of fatty acid chemistry and product specifications (acid value, IV, SV, color, purity)
• Familiarity with global oleochemical markets and key producing regions (Malaysia, Indonesia, EU, USA)
• Expertise in commodity price risk management and forward purchasing strategies
• Proficiency in interpreting price indices ICIS, Platts, Bloomberg Commodity
• Strong negotiation, analytical, and contract management skills
• Working knowledge of import/export regulations, Incoterms, and customs procedures
• Experience with ERP systems (SAP MM, Oracle, or similar)
• Excellent communication skills for managing both domestic and international supplier relationships

Qualifications & Experience

• Bachelor's degree in Chemical Engineering, Oleochemistry, Food Technology, Supply Chain Management, or related discipline (MBA or postgraduate qualification preferred)
• 814 years of procurement experience, with a minimum of 5 years specifically in oleochemicals, fatty acids, specialty chemicals, or related commodity procurement
• Demonstrated experience in international sourcing, supplier development, and contract negotiation
• Prior exposure to oleochemical manufacturing environments is strongly preferred

Key Performance Indicators (KPIs)

• Raw material cost vs. budget and market benchmark
• Procurement savings achieved (annual)
• Supplier on-time delivery rate
• Incoming material quality rejection rate
• Inventory days on hand vs. target
• Supplier diversification index (reduction in single-source dependency)
• Contract coverage ratio (% of spend under long-term agreements)
• Import clearance cycle time