The Role of a Procurement Analyst
A procurement analyst’s responsibility within a company is to research and compare products and services from suppliers in order to decide what will be most compatible for the company. These analysts, also called purchasing analysts, agents or managers, determine which wholesale distributors or manufacturers will receive their company’s business.
In this career, procurement analysts are responsible for evaluating vendors and suppliers based on quality, price and speed of delivery. Evaluation, decision-making and communication skills are extremely important in this job. Assessing the various possibilities correctly could help the company financially or allow for products or services to be delivered in a timely manner.
Procurement analysts communicate frequently with vendors, as well as visit their distribution centers and plants to learn about their products, services and prices. Following these visits, analysts prepare reports on the suppliers and vendors and submit them for review. After a suitable vendor has been chosen, analysts negotiate contract terms after offering bids to desired vendors. Travel may be required to attend trade shows, conferences and meetings to keep up to date with industry trends and network with new suppliers.
Having a working technical knowledge of the goods or services being purchased is extremely important for procurement analysts. Being informed about the correct price, quality, availability and reliability of a product allows analysts to ensure the best purchase possible for their company. Procurement analysts are constantly studying sales records and inventory levels of their current stock, as well as keeping up to date with the changes that may affect the supply and demand for products and materials.
While growth for this job is only projected at 2 percent by 2024, it may be affected by increases in outsourcing or how much third-party usage is common with companies.
According to the Bureau of Labor Statistics, the median wage for buyers and purchasing agents is $59,620. Procurement analysts who work in the federal government, management of companies and enterprises, and manufacturing earn an average of more than $60,000 per year.
Becoming a Procurement Analyst
Procurement analysts are typically required to have at least a bachelor’s degree. One of the most common degrees for this career is a Bachelor of Science in Business Administration. This type of degree teaches strategic management, foundational business principles and marketing. Experience with certain computer software is necessary, such as spreadsheet analysis and SAP business management software.
On-the-job training lasts over one year, with procurement analysts being taught how to perform their basic job duties, such as negotiating with suppliers and monitoring inventory levels. Some certification may be required but is not mandatory with all employers.