is a person who, through his actions, mobilizes, controls and directs the company’s personnel to achieve maximum profit. Depending on the direction of activity of a production or trade organization, the requirements for the qualities and abilities of a candidate for this position and the functional responsibilities of the commercial director of the enterprise may differ slightly.

The role and main tasks of the commercial director

Despite the importance of this figure in the enterprise management system, his responsibilities and functions are not always clear. Most often, people from the purchasing department apply for this position. Who, if not a sales manager, knows the specifics of communication with clients, has experience in concluding contracts, and understands the peculiarities of his organization.

In general terms, the responsibilities of the commercial director of an LLC are as follows:

  • long-term and short-term profit planning;
  • effective management and control over the implementation of current tasks by the sales department;
  • providing information;
  • setting tasks for all departments of the enterprise;
  • control of division directors;
  • determination of the organization's marketing policy;
  • communication with key clients;
  • interaction with shareholders and partners;
  • control over the fulfillment of obligations and contracts of your enterprise related to business activities;
  • coordination of the work of departments.

Depending on the area of ​​activity of a particular enterprise, the above list may be supplemented or reduced. In any case, an applicant for this position must have a certain set of qualities.

Characteristic qualities of the candidate

The responsibilities and characteristics of the position occupied in the organization require from a specialist not only the ability to focus on results. The ability to make decisions in a difficult situation, conflict management skills, stress resistance and loyalty, responsibility and honesty, creativity and the ability to defend one’s own opinion must be possessed by a professional department head. These skills are especially needed by top managers of trading companies.

One of the important qualities is the presence of charisma and leadership abilities. The commercial director, whose responsibilities are specifically stated in the employment contract, must be able to captivate a team of employees and encourage people to work actively. Experienced personnel officers recommend hiring a professionally mature person, over 30 years of age, for this position. Such a specialist, making informed decisions, will be able to guide and train his subordinates and employees of related departments, leading them in the direction necessary for the company.

A candidate for this vacancy must have and understand the company’s own goals and objectives, among which the main one is regular profit making. A person must have a high level of responsibility and breadth of thinking, because his position is associated with coordinating the work of all leading departments and controlling the flow of cash receipts.

And, of course, this specialist simply cannot be not proactive, not communicative, irresponsible and not purposeful.

Responsibility for the finances and economics of the trading company

In many organizations, the responsibilities of the commercial director of an enterprise overlap with the functions of the financial director. Both of these specialists plan, direct and supervise the company's purchasing, marketing and financial activities. Any decisions and actions of a commercial director must have an economic justification and be aimed at making a profit both at the moment and in the future.

Being, in fact, the first deputy of the organization's chief executive, literally his “right hand, eyes and ears,” the head of the procurement department must work closely with management. The commercial director, whose responsibilities may vary slightly from company to company, reports directly to the business owner or general manager. The position of this top manager is relevant for companies that produce and sell any goods in large volumes.

At large-scale enterprises, the commercial director is entrusted with solving global issues related to the constant increase and improvement of financial performance, with the development of measures aimed at this.

Commercial director: responsibilities and functions in a trading company

The main job of this employee in this case is to promote the brand and products of the enterprise on the market in order to make a profit. To achieve these goals, work is organized in several directions:

  • determination and construction of marketing policy;
  • control over accounts receivable;
  • formation of procurement and sales plans, supervision of their implementation;
  • selection and training of a sales team;
  • creation of a motivation system and certification of managers;
  • sales process inspection;
  • monitoring customer requests.

The responsibilities of the commercial director of a trading company additionally include planning and managing assortment policy, knowledge of logistics and the basics of product distribution, interaction with key clients that are important for the enterprise, and participation in negotiations that are important for the organization.

Analysis of sales across the entire assortment line, profit and turnover for each position, seasonality and stability of income, functions of a leading merchandise specialist - all this is in charge of the commercial director. Job responsibilities may vary slightly depending on the specific profile of the company, but the main activity is aimed at consolidating the company’s position in the market and increasing income.

It is worth mentioning that in various companies the responsibilities of this manager involve leadership over such components of activity as sales, marketing, advertising, and purchasing. Therefore, it is worth saying that the job title may sound different, for example, sales director or marketing director.

Job responsibilities of the commercial director

The position of a commercial director has practically no boundaries, so the range of his tasks and functions can be quite wide. It can act in the following directions:
  • Development of plans for the activities of an enterprise or organization together with management, that is, the general director and the company of shareholders.
  • Searching for new ways and opportunities necessary for the company to successfully develop and occupy its niche in the market.
  • Solving problems in the field of personnel development, for example, salespeople and managers.
  • Market analysis.
  • Management of the sales department, selection and selection of sales channels.
  • Development of a price policy and range of products or services provided by the company, programs to increase sales.
  • In addition to developing and implementing these programs, such a manager must ensure that they function in a positive manner and are implemented.
  • Exercising control in the field of logistics.
  • Making plans and forecasts about the future needs and costs of the company.
In addition to the above responsibilities, a person holding this position may also be responsible for timely and reliable cooperation with suppliers (raw materials, products, services, etc.), resolve issues of all deliveries, select suppliers, and participate in planning the company’s budget for a certain period of time.

Job description

In every company and organization, the job description of the person holding this position is drawn up taking into account all the features of the activity in which the company is engaged. Therefore, the job description of, for example, a commercial director of an oil refinery and the job description of a person working in a similar position in a company that sells household appliances will be quite different.

But, nevertheless, they will also contain a general list of tasks and areas in which a given manager should be able to understand and work.

It is important to understand that a person holding the position of commercial director must have the appropriate level of knowledge and skills, as well as experience in management positions.

What role does the commercial director play?

Since this manager has a wide range of responsibilities and tasks, it is quite possible to assume that he plays one of the leading and significant roles in the company.

Without his participation, not a single important meeting of the company’s shareholders takes place, the plans and prospects for the development of the organization are not discussed, the budget for the financial year is not formed, and only with his approval are contracts concluded with suppliers and companies providing services.

Due to the fact that a commercial director is a person with certain powers, it is important to pay attention to his personal characteristics when hiring, so that you do not have to deal with his use of his official position for personal purposes.

Rights and responsibilities of a commercial director

This employee has the following rights:
  • Represent the interests of the company on issues of its activities to government bodies, other organizations, enterprises and institutions.
  • Make information requests from divisions and branches of the company that are necessary to carry out its activities.
  • Submit proposals regarding the development and improvement of the company for consideration by shareholders and the general director.
  • Develop responsibilities for your subordinates.
  • Participate in the preparation and development of documentation relating to its activities.
  • Put signature and visa on documentation that is directly related to his activities.
  • Demand from the management of the company or enterprise that all organizational and technical conditions for carrying out work activities are met.
  • Interact on issues related to its activities with the heads of other structural divisions.


To the above list of these rights, any organization, if it deems it necessary, has the right to add its own.

In most companies responsibility this employee boils down to the following points:

  • For offenses that are committed in the course of activities in accordance with the Criminal Code of the Russian Federation, the Civil Code of the Russian Federation.
  • For improper performance or failure to fulfill job duties specified in the job description in accordance with the labor legislation of the Russian Federation.
  • For causing material damage to the company in accordance with the Criminal Code of the Russian Federation, the Civil Code of the Russian Federation.
The management of the organization also has the right to include in the document regulating the activities of the employee (job description) additional clauses about his responsibility.

Responsibilities of a commercial director of an LLC

The responsibilities of the commercial director of an LLC, that is, a private company, are largely determined by the specifics of its activities. In most companies, no matter what form (LLC, OJSC or JSC), the commercial director performs the following tasks:
  • is involved in determining the strategy and policy of the company;
  • compiles characteristics of products sold;
  • carries out intra-corporate and inter-corporate communication on issues that directly relate to sales of manufactured products;
  • optimizes sales mechanisms and methods.
Also, this manager in an LLC can be involved in drawing up reports on his activities, organizing employee training, and resolving some personnel issues and tasks.

Responsibilities of a commercial director of a trading and construction company

For greater clarity, the responsibilities of a commercial director can be considered using the example of a trading and construction company. Responsibilities of a person holding this position in a large construction company, are usually as follows:
  • he searches for new customers in need of construction services;
  • is engaged in the development of such areas of the company as construction, design;
  • negotiates with suppliers and customers;
  • analyzes competing organizations;
  • prepares documentation and commercial proposals regarding the provision of construction services;
  • prepares documents for participation in tenders;
  • controls the quality and timing of construction services provided by the company.


The main tasks of the commercial director in trading company somewhat different, since all its activities are aimed at selling and promoting the goods sold on the market in order to increase sales and profits. This manager is engaged in forming purchasing and sales plans, selecting and training sales managers, developing the organization’s marketing policy, and drawing up systems for motivating and adapting personnel.

Whatever field a given manager works in, it is very important that his personal characteristics correspond to the level of the position he occupies. Successful people in this position will be those who are sociable, stress-resistant, mobile, able to think strategically, have the makings of a leader, are responsible and can analyze.

  • How the concept of “commercial director” has evolved.
  • Job responsibilities and functions of the commercial director.
  • Which companies do not need a commercial director?
  • In what cases is it advisable to rename a commercial director to sales director?
  • At what enterprises can the commercial director be responsible for purchasing?

Commercial Director deals with areas of activity related to supply issues, economic and financial activities and sales of the company.

The term “commerce” became fundamental for the people who were the first in Russia to work as commercial directors. After all, many areas of the domestic economy in the 90s were based on resales. Therefore, the entire business was based on commerce - to purchase on more favorable terms and then sell at a higher price. These tasks were assigned to both ordinary shuttle workers and entire companies that today managed to achieve millions in turnover.

At that time, many companies did not even have the positions of sales director or purchasing director, and the term “marketing” was known only to a few. The commercial director was assigned a second role after the general director, who was usually a shareholder or owner of the business.

CEO speaks

Ilya Mazin, General Director of Office Premier CJSC, ErichKrause group of companies, Moscow

Often people in the position of commercial director grow into successful owners and managers of enterprises. Such career progression is much less common among financial or administrative directors. Commercial directors in 80% of cases are specialists with experience in sales departments, as managers or executives responsible for VIP areas. Sometimes specialists who leave purchasing departments also become commercial directors.

The commercial director is assigned job responsibilities in several areas of activity simultaneously. Therefore, he has sufficient skills to move to a higher position. Therefore, in the position of commercial director, a person gains quite valuable and important experience, mastering the necessary skills and forming useful connections for future work.

As all business and markets became more civilized, separate tasks began to be separated from commercial activities - including the functions of marketing, purchasing and sales. Therefore, the role of commercial directors in the work of companies has undergone certain changes.

KPI for commercial director: calculation examples

The editors of our magazine used examples to figure out for what indicators and in what amount the commander should be rewarded.

Job responsibilities and functions of the commercial director

The area of ​​responsibility of any commercial directors includes a number of basic functions:

  1. Determines distribution channels for goods and services.
  2. Strategic planning of the company.
  3. Work with providers.
  4. Regulating the work of the sales department.
  5. Control of budgeting in all components of the company.
  6. Coordination of company marketing.
  7. Reducing business costs.

Some companies' interpretation of the position of commercial director may differ. Let's look at this issue in more detail using practical examples.

Commercial Director = Head of Sales Department

In this case, on commercial director assigned a minimum set of functions. He will only be responsible for the sales of his company. A more appropriate job title in this situation would not be Commercial Director, and sales director. To prevent a person from feeling demoted, you can rename a position during a change in leadership in that position.

Expert opinion

Andrey Milyaev, commercial director of the Hosser group of companies, St. Petersburg

In our company, the commercial director will manage two sales departments - complex telecommunications projects and engineering equipment. We are currently engaged in the reorganization and restructuring of our company’s business processes. The purpose of such transformations is to increase the efficiency of our interaction with the market, and internal interaction within the company itself - between departments that are responsible for the areas of logistics, sales and production. It is important that management in the company is provided from one point - for a unified policy of working with the market. In the future, when business processes have been formed, it is necessary to select workers from the existing sales department employees who will become the heads of these departments.

Commercial Director = Sales Director + Marketing Director

This option corresponds to the position of director of marketing and sales, which has become common in Western practice. The marketing director and commercial director in one person need the ability to perfectly navigate market trends, taking into account the specifics of the work of competing companies, customer preferences and expectations. But managing sales in the market often requires maximum efficiency, which is why marketing itself fades into the background. As a result Commercial Director may not have enough time for the marketing field. Consequently, there may be a lack of necessary marketing tools, as well as the skills to use them in practice, and a strategic view of the medium-term perspective of market development.

  • Material motivation of personnel. Advice from the General Director

Commercial Director = Director of Sales + Director of Marketing + Head of Purchasing

The combination of marketing, sales and purchasing in one hand provides a set of important advantages when choosing the most popular product at the moment, also with an understanding of the consumer qualities of the product (quite important when choosing products). This option becomes especially relevant, first of all, for intermediary and trading companies. But it should be used quite carefully if the company does not cooperate with regular suppliers, and therefore it is necessary to regularly analyze the competitive market to find the most suitable purchasing conditions. In such conditions, the likelihood increases that while striving to fulfill the sales plan, the manager will not have the opportunity to pay due attention to finding the best options for working with his supplier.

Expert opinion

Yulia Koroleva, Commercial Director of CJSC National Distribution Company, Moscow

The main principle of our organizational structure is efficiency of decision-making and mobility. Therefore, the entire sales block (including purchasing, marketing and sales) is united, and these functions are assigned to the commercial department. The tasks of the commercial director include not only control, but also the work itself with clients, concluding agreements on the supply of goods with large manufacturers, and monitoring price trends in their market. This organization of work allows us to have reliable information without distortion. For example, it can be distorted within companies in which these areas of activity are assigned to different departments (inconsistency of actions is possible). Thanks to the organizational principle, our company ensures operational management of its business processes while reducing costs.

Commercial Director = General Director

A similar option is possible when the General Director is not formally ready to transfer his functions as the head of the company, but is not actually involved in operational management. Consequently, his tasks are assigned to his “right hand” - the first deputy, the executive director, and in companies in which priority is given to commercial activities, these functions are assigned to the commercial director. Personally, I am against such a combination of functions. The General Director needs to distribute resources across all areas of activity. And when conflicts arise (for example, between financial and commercial departments), the general director must become an independent arbitrator. When managerial functions are assigned to the commercial director, there is a danger that these processes will be transferred to the benefit of commercial departments.

Expert opinion

Dmitry Grishin, commercial director of the Aqua Star company, Moscow

I work as a commercial director, but in fact I am entrusted with the functions of a general director. Because the owner of our company, with his ambitious plans to conquer new directions (not related to our main field of activity), strives to achieve complete control of the company’s activities, but at the same time retain enough time to work on new projects. Consequently, some problems arise - important company decisions take too long to be made.

Through joint efforts, we managed to get away from total control (over every penny spent); certain issues were highlighted that could affect the company’s work - functional characteristics of equipment, logistics, financial factors related to loans and their repayment. I resolve these issues jointly with our general director. At the same time, all issues remain under the control of the General Director.

Consequently, the company really remains under the control of the CEO, but at the same time he has more free time.

Dmitry Kurov, commercial director of ISG, Moscow

From personal experience, I can say that a commercial director can achieve effective work provided that he is “balanced” by the financial director. Because otherwise, the commercial director's job responsibilities may be largely focused on commerce, thereby missing out on operational efficiency issues.

In most cases, the reason for misunderstanding between the general and commercial director is their solution of problems at different levels. I had to work when the general director set the vector of activity that impeded commercial development from the position of commercial director. In reality, what was more important was the company's share price, which was influenced by many factors.

What companies don't need a commercial director?

Companies in which selling services or products is not particularly difficult do not need a commercial director. Basically, these are companies that occupy a position in the market that is close to a monopoly (taking into account their location, the specifics of their products or other factors). The role of the commercial factor is low in companies that offer individual or exclusive developments. Such companies can work in any industry - from the development of highly specialized, professional software to complex engineering products. In this segment, greater importance is given to representatives of the creative or production department; their role is limited to the display and presentation of developed products. Often salespeople are managed by one of the top managers, so the commercial director is not particularly relevant.

CEO speaks

Ilya Mazin, General Director of the Office Premier holding, ErichKrause group of companies, Moscow

The need for a commercial director arises when a company has to connect two factors - obtaining favorable terms of supply and sales. If one of these functions is absent or decentralized, then there is no need to appoint a commercial director.

Also, very large or very small companies do not need a commercial director. After all, small companies simply cannot afford the costs of managers. As a rule, in this case the commercial director is replaced directly by the owner of the company.

If a company has several founders, then they usually distribute areas of management among themselves. One of them takes upon himself the block of earning money, the second is entrusted with the administrative and economic complex, etc.

In the case of large businesses, the tasks of the commercial director are often distributed among the heads of areas.

But in the work of medium-sized companies, the commercial director becomes a key figure - a top manager, on whom the profitable part of the business directly depends.

The commercial director is one of the key and significant figures in the management system of each enterprise. At the same time, there is no common understanding of what he should do.

It should be said that in some organizations the responsibilities of a commercial director involve managing marketing, sales, purchasing, and advertising, so the position may sometimes sound different, for example, director of sales and marketing. In other companies, such a department as marketing does not report to him. If we talk about small organizations, then, as a rule, they do not have such a position. There they simply recruit individual managers for various divisions, while the commercial director can be taken over by the manager.

It is worth noting that the commercial director reports directly to the head of the company. This position plays a crucial role in the preparation as well as the implementation of strategies aimed at the development of the enterprise.

In most cases, tasks that relate to sales are solved by the commercial director. His responsibilities include developing a sales plan, its implementation, as well as overseeing the sales, logistics and marketing system. He must also constantly maintain contacts with shareholders.

If the activity of a particular company is production, then, first of all, the commercial director is responsible for the purchase of materials, supplies, logistics, transport, as well as for relations with suppliers. If we talk about large structured organizations, then these 3 areas are controlled by individual line directors, headed by the commercial director.

Responsibilities

As noted above, the position of a commercial director is very multifaceted, so his responsibilities may include the following areas:

    Together with shareholders and the general director - developing a work plan (current and long-term) for the organization, ensuring the effective use of all resources.

    Development of strategies, search for new opportunities for successful development of the company in the market.

    Determining the company's trading policy based on market analysis and past sales performance, determining the geographical areas of the company's work, implementing the latest sales strategies.

    The commercial director, whose responsibilities are quite varied, is also responsible for creating and effectively training a sales team.

    Sales department management, selection of sales channels, dealer network management.

    Together with the marketing department, the commercial director is also required to develop assortment and variety programs that can increase the company's sales. The successful implementation of these policies and programs also rests with the commercial director.

    Organization of logistics - packaging, warehouses, delivery and so on. Planning and forecasting future needs, as well as creating a structure for the effective delivery of goods, searching for suppliers of warehouse and transport services.

    The commercial director is responsible for smooth cooperation with suppliers, for commercial procurement, selection of services and suppliers, as well as for all coordination of supply issues. His responsibilities also include participation in the development of the organization’s budget for the financial year.

Personal qualities

A candidate for such a high position as a commercial director, whose duties involve constant contact with people, must have certain things, namely:

    Ability to interact with people, communication skills.

    Qualities of an organizer and leader.

    Strategic thinking.

    High efficiency.

    Ability to work with numbers and other data,

    Mobility, ability to make decisions quickly.

    Responsibility, initiative, results orientation.

    High resistance to stressful situations.

    The desire for self-development and growth.

Recruitment of personnel for a large construction company.

Responsibilities:

  • Search and attraction of new volumes of construction and engineering services.
  • Development of construction, design and other areas of the company’s activities;
  • Conducting commercial negotiations within the framework of sales and supply policies, business correspondence with Customers in the interests of the company.
  • Analysis of the competitive environment of the construction and engineering services market.
  • Formation of a sales plan for the services of a general contracting construction company and ensuring its implementation.
  • Organization of work on the preparation of tender documentation and participation in competitions; preparation and calculation of commercial proposals, conclusion of contracts, interaction with Tender Committees.
  • Management of the activities of the company's structural divisions, supervision of current projects.
  • Monitoring compliance with work quality standards, ensuring the organization fulfills its obligations.
  • Monitoring the implementation of design and construction schedules.

Requirements:

  • Construction equipment is desirable;
  • Experience in a key management position in construction for at least 5 years;
  • Experience working in the structures of a general contractor and technical customer;
  • Knowledge of processes and technologies for the construction of class A buildings;
  • Knowledge of economics and pricing in construction;
  • Experience in managing project managers;
  • Experience in construction management and commissioning of large projects.
  • PC knowledge: user of office applications, AutoCAD;


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