The Role of a Procurement Analyst
A procurement analyst’s duties within a company are 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. 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 purchasing plan 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.
Procurement Career Growth
According to the U.S. Bureau of Labor Statistics (BLS), about 45,800 openings for purchasing managers, buyers, and purchasing agents are projected each year, on average, from 2020 to 2030. The employment of purchasing managers is projected to increase because these workers will continue to be needed to help procure goods and services for business operations or for resale to customers.
Procurement Analyst Salary
The BLS reports that the median wage for buyers and purchasing agents was $66,690 in May 2020. Procurement analysts who worked in the federal government, management of companies and enterprises, and manufacturing earned an average of more than $74,113 in 2020. Purchasing managers at the top 10% of the field earned over $112,170.
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 path 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 for all employers.