Procurement Analyst vs. Buyer: What Are the Differences?

A procurement analyst and buyer are both responsible for the purchasing of goods and services for their company. Though their duties may overlap, there are several key differences between these two positions. In this article, we discuss the job duties, skills and experience needed for each role, as well as the average salary you can expect to earn.

What is a Procurement Analyst?

Procurement Analysts work in a wide variety of industries to streamline and improve the purchasing process for their company. They work with suppliers to negotiate contracts, pricing and delivery schedules. Procurement Analysts also track spending trends and develop strategies to reduce costs. They keep up-to-date on industry changes and new products that could benefit their company. In some cases, Procurement Analysts may also oversee a team of buyers and purchasing agents.

What is a Buyer?

Buyers are responsible for sourcing and purchasing the products and materials that a company needs to function on a day-to-day basis. They work with suppliers to negotiate pricing, terms and conditions, and delivery schedules. They also track and manage inventory levels to ensure that the company has enough stock to meet customer demand. In some cases, buyers may also be responsible for forecasting future demand and planning accordingly. Buyers typically work in office environments and report to a procurement manager or similar role.

Procurement Analyst vs. Buyer

Here are the main differences between a procurement analyst and a buyer.

Job Duties

Procurement analysts and buyers share some job duties, such as researching marketplaces to find the best products at the most affordable prices. However, procurement analysts typically focus more on the analytical aspects of the job, while buyers tend to focus more on the purchasing aspects. This means that a procurement analyst might perform research before sending a buyer delegation to purchase goods for the organization. A buyer might then use the procurement analysis to determine which products to purchase from the marketplace.

Job Requirements

Procurement analysts typically need a bachelor’s degree in business administration, finance or another related field. Some employers prefer candidates to have a master’s degree as well, but it is not required for entry-level positions. Additionally, many procurement analysts pursue certifications through the National Association of Purchasing Management (NAPM) or the Institute of Supply Management (ISM). These organizations offer training programs that teach professionals how to use purchasing software and other tools they might need on the job.

Buyers and purchasers typically need a bachelor’s degree in business administration, marketing or another related field. Some employers prefer candidates to have a master’s degree as well, but it is not required for entry-level positions. Additionally, many buyers and purchasers pursue certifications through the National Association of Purchasing Management (NAPM) or the Institute of Supply Management (ISM). These organizations offer training programs that teach professionals how to use purchasing software and other tools they might need on the job.

Work Environment

Buyers and procurement analysts typically work in different environments. Buyers often work for companies that manufacture goods, such as clothing or electronics. They may travel to factories or other locations where the products are made to ensure they meet quality standards.

Procurement analysts usually work in offices, but they also visit suppliers to evaluate their facilities and discuss business opportunities with them.

Skills

Both procurement analysts and buyers use research skills to identify potential vendors and products that meet the needs of their company. They also both need to have negotiation skills to get the best possible price for their products.

Procurement analysts also need to have analytical skills to evaluate data and make recommendations about which products or vendors to use. They may also need to create reports detailing their findings. Buyers typically do not need to have as strong of an analytical background, but they do need to be able to make quick decisions based on the information they are given.

Procurement analysts also need to have excellent communication skills to interact with vendors and other stakeholders. They may also need to present their findings to upper management. Buyers need to have strong communication skills to interact with vendors, but they also need to be able to build relationships with them.

Salary

Procurement analysts earn an average salary of $73,147 per year, while buyers earn an average salary of $65,540 per year. Both of these salaries may vary depending on the size of the company, the location of the job and the level of experience the employee has.