Cargo Procurement Manager

🎯 Role Definition

The Cargo Procurement Manager is accountable for developing and executing end-to-end procurement strategies for cargo transportation and logistics services (air, ocean, road, rail), leading carrier sourcing and RFP/RFQ processes, negotiating and managing contracts and SLAs, and delivering measurable cost savings, service improvements and risk mitigation across the freight and forwarding footprint. This role partners closely with Supply Chain, Operations, Customs/Trade Compliance, Finance and Commercial teams to align transport procurement with inventory, customer service and sustainability goals.

Keywords: cargo procurement manager, freight procurement, carrier sourcing, contract negotiation, RFP/RFQ, logistics procurement, freight cost optimization, TMS, supplier management, Incoterms, customs compliance, freight audit, KPIs, supply chain procurement.

📈 Career Progression

Typical Career Path

Entry Point From:

Freight Buyer / Freight Analyst
Logistics Coordinator / Logistics Analyst
Procurement Specialist (Transportation & Logistics)

Advancement To:

Head of Cargo Procurement / Global Procurement Manager (Transportation)
Director of Supply Chain / Director of Transportation Procurement
VP of Global Logistics or Chief Procurement Officer (for broader remit)

Lateral Moves:

Carrier / Vendor Relationship Manager
Contract Manager (Logistics & Transportation)
Logistics Operations Manager / Head of Freight Operations

Core Responsibilities

Primary Functions

Lead end-to-end carrier sourcing and tender processes (RFP/RFQ) for air, ocean, road and rail shipments, designing evaluation criteria, managing vendor responses, facilitating bid clarifications and selecting economically and operationally optimal carriers.
Develop and implement a strategic freight procurement plan that aligns with corporate cost targets, service-level objectives, capacity forecasts and sustainability goals, driving measurable year-over-year freight spend reductions.
Negotiate and manage master service agreements, annual contracts, spot contracts and SLAs with airlines, ocean carriers, NVOCCs, trucking providers, rail operators and freight forwarders to secure competitive rates, transit time guarantees and liability terms.
Own carrier performance management including KPI definition, scorecards, monthly and quarterly reviews, corrective action plans, on-time performance monitoring, claims resolution metrics and continuous improvement programs.
Analyze freight spend, lane-level costing, total landed cost and mode-shift opportunities using advanced Excel models, spend analytics and TMS/ERP data to identify savings opportunities and support business cases for consolidation or carrier changes.
Run competitive tender processes and spot buy strategies for high-cost lanes and seasonal peaks, combining historical data, market intelligence and demand forecasting to optimize tender timing and award criteria.
Collaborate with Customs/Trade Compliance and Regulatory teams to ensure carrier contracts and terms comply with Incoterms, import/export regulations, sanctioned party screening, trade documentation and audit requirements.
Lead cross-functional stakeholder engagement with Operations, Planning, Sales, Finance and Legal to translate transportation requirements into procurement specifications, ensure alignment on service levels and enable smooth contract implementation.
Implement freight procurement governance, policies and standard operating procedures — including rate approval workflows, spot-buy controls, supplier onboarding requirements and invoice auditing processes to reduce leakage and financial risk.
Partner with Finance to design freight budgeting, accruals, KPI tracking and freight cost allocation methodologies; provide monthly reporting and variance explanations for senior leadership.
Manage supplier relationship lifecycle: onboarding, performance improvement programs, annual business reviews, capacity negotiations, contractual escalations and supplier risk assessments.
Design and drive freight optimization initiatives—consolidation, modal shift, network redesign, packaging & cube optimization, and backhauling—to reduce cost per unit and improve carbon intensity across transportation.
Work with IT and TMS/ERP teams to define technical requirements, support integration of procurement contracts into the TMS/eProcurement platform, and automate rate cards, carrier selection logic and freight tender workflows.
Conduct regular market intelligence and benchmarking (rate, capacity, seasonality, fuel surcharges) to inform negotiation strategies and maintain a competitive position in volatile freight markets.
Lead and support freight claims and insurance recoveries, coordinating with carriers, freight forwarders, operations and legal to maximize recovery and minimize customer impact.
Manage procurement-related risk by developing contingency plans for capacity shortages, carrier insolvency, strikes or force majeure events; maintain a diversified carrier base and emergency sourcing options.
Drive sustainability procurement initiatives such as low-carbon carrier selection, green freight contracts, alternative fuel pilots and including carbon intensity clauses in RFPs to support company ESG targets.
Coordinate and manage tender evaluations and commercial comparisons that include landed cost, transit reliability, on-time delivery, claims history, and environmental impact to produce defensible award recommendations.
Implement and monitor SLA penalties and incentives in carrier contracts to align carrier behavior with business objectives and improve accountability for service delivery.
Mentor and manage procurement analysts and buyers, developing team competencies in sourcing, negotiation, rate modeling and contract administration to scale procurement capabilities.
Support legal in drafting, reviewing and negotiating transportation terms and conditions, indemnities, liability limits and demurrage/detention clauses to protect company exposure.
Lead continuous improvement projects such as freight audit & payment optimizations, invoice reconciliation automation and supplier consolidation programs to reduce administrative costs and improve payment accuracy.

Secondary Functions

Support ad-hoc data requests and exploratory data analysis.
Contribute to the organization's data strategy and roadmap.
Collaborate with business units to translate data needs into engineering requirements.
Participate in sprint planning and agile ceremonies within the data engineering team.
Provide subject-matter expertise for cross-functional projects including customer service escalations, supply continuity planning and audit reviews.
Represent procurement in supplier sustainability and CSR assessments as needed.
Facilitate training for operational teams on rate structures, contract terms and approved carrier lists.

Required Skills & Competencies

Hard Skills (Technical)

Strategic freight sourcing & tendering (RFP/RFQ) — demonstrated end-to-end management of carrier tenders for air, sea, road and rail.
Contract negotiation and commercial drafting for transportation services, including SLAs, pricing structures, rate tables and liability clauses.
Freight rate modeling, total landed cost analysis, lane level benchmarking and cost-to-serve analysis.
Experience with TMS, eProcurement platforms and ERP systems (examples: Oracle, SAP, Manhattan, Blue Yonder) and integrating ratecards and contracts.
Advanced Excel (pivot tables, Power Query, VBA or advanced functions), and familiarity with data visualization tools (Power BI, Tableau) for freight analytics.
Freight audit & payment knowledge, auditing invoices, validating surcharges and resolving billing discrepancies.
Knowledge of Incoterms, customs documentation, international shipping regulations, carrier liability regimes and trade compliance.
Carrier performance management & KPI design (on-time delivery, dwell time, claims rate, cost per TEU/CBM).
Market intelligence, capacity and rate drivers in freight markets (fuel surcharges, equipment shortages, peak season impacts).
Stakeholder management and cross-functional collaboration skills to translate commercial outcomes into operational plans.
Familiarity with sustainability metrics for transport (CO2e/Km, scope 3 reporting) and experience incorporating environmental measures into procurement.
Risk management and contingency planning for supply chain disruptions, including alternate sourcing and capacity buffers.

Soft Skills

Strong commercial acumen with a results-oriented mindset for delivering cost savings and service improvements.
Excellent negotiation and influence skills with carriers, suppliers and internal stakeholders.
Clear, persuasive communication and presentation skills for senior leadership reporting and supplier discussions.
Analytical problem-solving with attention to detail and the ability to synthesize complex data into actionable recommendations.
Leadership and people-management skills to coach procurement staff and lead cross-functional projects.
Project management and organizational skills to manage multiple tenders, contract renewals and continuous improvement initiatives concurrently.
Adaptability and resilience in fast-moving freight markets and during supply chain disruptions.
Ethical judgement and integrity in supplier selection, contracting and procurement compliance.

Education & Experience

Educational Background

Minimum Education:

Bachelor's degree in Supply Chain Management, Logistics, Business Administration, Economics, Engineering or a related field.

Preferred Education:

Master's degree (MBA or MSc in Supply Chain/Logistics) or professional certifications (CIPS, CPSM, CSCP, CITP).

Relevant Fields of Study:

Supply Chain Management
Logistics & Transportation
Business Administration
International Trade / Economics
Industrial Engineering

Experience Requirements

Typical Experience Range: 5–10+ years in transportation procurement, freight sourcing or logistics buying, with at least 2–3 years in a managerial or lead role.

Preferred:

7–10 years of direct experience managing freight procurement across multiple modes (air, ocean, road, rail) in a global or regional role.
Demonstrable track record of delivering freight cost savings, implementing RFP processes, negotiating carrier contracts and improving carrier performance.
Experience working with TMS/ERP systems, eProcurement tools and freight analytics platforms; prior exposure to customs/trade compliance and sustainability procurement is strongly preferred.