What Does a Procurement Analyst Do?

Procurement analysts are responsible for sourcing and purchasing the materials, equipment, and services that their organization needs to function effectively. They commonly work with vendors, suppliers, and other third-party service providers to ensure that their company is getting the best value for its money.

Procurement analysts may also be tasked with monitoring the quality of the goods or services they’re buying. This might include auditing vendors to ensure that they’re meeting certain standards or conducting inspections on incoming shipments to make sure they meet quality control requirements.

Procurement Analyst Job Duties

Procurement analysts typically have a wide range of responsibilities, which can include:

• Coordinating with internal departments to ensure that the company’s purchasing needs are met
• Reviewing bids for new contracts, evaluating possible vendors, and conducting negotiations with selected vendors
• Conducting market research and analysis to identify potential suppliers who could meet the company’s needs
• Negotiating contracts with suppliers on behalf of the company
• Maintaining records of all purchase orders, invoices, payments, and other accounting documents related to procurement activities
• Reviewing purchase orders for compliance with company policies regarding terms, conditions, quantities, shipping instructions, etc
• Assisting in developing a strategic sourcing plan for the company that aligns with corporate objectives
• Educating vendors about company guidelines, policies, and procedures to ensure smooth operation of the procurement process
• Ensuring compliance with state, federal, and international regulations governing procurement activities

Procurement Analyst Salary & Outlook

Procurement analysts’ salaries vary depending on their level of education, years of experience, and the size and industry of the company. They may also earn additional compensation in the form of bonuses.

• Median Annual Salary: $70,500 ($33.89/hour)
• Top 10% Annual Salary: $122,000 ($58.65/hour)

The employment of procurement analysts is expected to decline over the next decade.

Organizations are increasingly using automation and other efficiency-enhancing technologies, such as big data analytics, to streamline procurement processes. Organizations also are beginning to outsource more procurement activities, which may reduce demand for procurement analysts.

Related: Procurement Analyst Interview Questions and Answers

Procurement Analyst Job Requirements

The following are some of the requirements that are often needed in order to become a procurement analyst:

Education: Procurement analysts typically need a bachelor’s degree in business administration, supply chain management, operations management or a related field. Some procurement analysts choose to earn a master’s degree in business administration to increase their earning potential and qualify for senior-level positions.

Training & Experience: Most procurement analysts receive on-the-job training to learn the specific processes and procedures of their role. Training may include shadowing current procurement analysts or performing duties under the supervision of a senior procurement analyst or other senior member of the procurement department. Training may last for a few weeks to a few months.

Certifications & Licenses: While certification is not usually a requirement for an acquirer, it can be a helpful way to demonstrate your skills and qualifications to potential employers or employers.

Procurement Analyst Skills

Procurement analysts need the following skills in order to be successful:

Technical skills: Technical skills are the knowledge and ability to use software and technology. This includes knowledge of computer programs, software and hardware, as well as the ability to use them to complete tasks. Procurement analysts often need to use a variety of software and applications to complete their work, including project management software, spreadsheets, databases and more.

Communication skills: Procurement analysts communicate with a variety of individuals and groups, including other procurement analysts, suppliers, managers and customers. Effective communication skills can help procurement analysts convey information clearly and answer questions accurately.

Problem-solving skills: Procurement analysts use their problem-solving skills to find solutions to challenges that arise during the procurement process. For example, they may need to find alternative suppliers when the original supplier is no longer available or find ways to reduce the cost of a product.

Critical thinking skills: Critical thinking is the ability to analyze a situation and make a decision based on the information you have. Procurement analysts use critical thinking skills to make decisions about the best way to purchase products and services for their organization. They also use critical thinking skills to find ways to save money and negotiate with suppliers to get the best deals.

Business acumen: Business acumen is the ability to understand the needs of a business and how to meet them. Procurement analysts use their business acumen to research the best products for their company, negotiate with suppliers and create contracts that meet the needs of the business.

Procurement Analyst Work Environment

Procurement analysts work in a variety of settings, including corporate offices, government agencies, and nonprofit organizations. They typically work full time during regular business hours, although they may occasionally work overtime to meet deadlines. Procurement analysts typically work on teams with other analysts and support staff, such as procurement specialists and contract administrators. They may also interact with managers, executives, and other stakeholders to provide information about procurement processes and to make recommendations about how to improve those processes.

Procurement Analyst Trends

Here are three trends influencing how procurement analysts work. Procurement analysts will need to stay up-to-date on these developments to keep their skills relevant and maintain a competitive advantage in the workplace.

The Growth of Supply Chain Management

The growth of supply chain management is a trend that is quickly changing the way businesses operate. This trend is causing companies to focus more on efficiency and cost-saving measures, which has led to an increased demand for procurement analysts.

Procurement analysts are responsible for sourcing products and services for their company. They need to be able to understand the needs of their company and find the best deals possible. In order to be successful in this field, they will need to be well-versed in the latest trends and technologies.

More Focus on Sustainability

As businesses become more environmentally conscious, they are placing greater emphasis on sustainability. This means that procurement analysts will need to be familiar with sustainable materials and practices.

By understanding how to source sustainable materials and products, procurement analysts can help their companies reduce their impact on the environment. Additionally, they can help to educate other employees about the importance of sustainability.

Greater Use of Technology

Technology is playing an increasingly important role in the world of procurement. With the rise of online shopping, businesses are looking for professionals who can use technology to find the best deals on products and services.

This trend is leading to an increased demand for procurement analysts who have experience using technology to find the best deals. By learning how to use technology to their advantage, procurement analysts can ensure that their company gets the best value for its money.

How to Become a Procurement Analyst

A procurement analyst career path can be a great way to start your career in business. As a procurement analyst, you’ll have the opportunity to work with a variety of different companies and industries, which will give you a well-rounded experience. You’ll also learn how businesses buy goods and services, which is important knowledge for anyone working in business.

To become a procurement analyst, you’ll need to have strong analytical skills and be able to think critically about problems. You should also be able to communicate effectively both written and verbally.

Advancement Prospects

A procurement analyst is responsible for the purchasing of goods and services for an organization. They work with suppliers to negotiate contracts, set up payment terms, and track inventory levels. A procurement analyst typically works their way up through an organization, starting in a junior role and eventually assuming more responsibility.

As a procurement analyst gains experience, they may be promoted to a senior procurement analyst or procurement manager position. In these roles, they will have more responsibility for overseeing the procurement process and ensuring that it runs smoothly. They may also be responsible for training and mentoring junior analysts.

Those with significant experience and expertise in procurement may eventually become consultants, working with multiple organizations to help them improve their procurement processes.

Procurement Analyst Job Description Example

The procurement analyst is responsible for the analysis of an organization’s procurement processes and procedures. They work to identify inefficiencies and areas of improvement, and make recommendations to streamline the procurement process. The analyst also works with vendors to negotiate contracts and pricing, and manages the procurement budget. The ideal candidate will have a bachelor’s degree in business administration or a related field, and experience working in procurement, supply chain management, or a similar field. They must be highly analytical, detail-oriented, and have excellent communication and negotiation skills.

Duties & Responsibilities

• Understand the organization’s business objectives and how they translate into specific procurement needs
• Develop and maintain strong relationships with internal stakeholders to ensure a deep understanding of their requirements
• Conduct market research to identify potential suppliers that can provide goods or services that meet the organization’s needs
• Evaluate proposals from suppliers to determine which offers the best value in terms of quality, price, and delivery
• Negotiate contracts with suppliers on behalf of the organization
• Manage supplier performance to ensure that they are meeting the terms of their contract
• Resolve any issues that may arise with respect to the procurement of goods or services
• Maintain accurate records of all procurement activities
• Prepare reports on procurement activity for senior management
• Stay abreast of developments in the procurement field and share relevant information with colleagues
• Identify opportunities for cost savings within the procurement process
• Assist with the development and implementation of procurement policies and procedures

Required Skills and Qualifications

• Bachelor’s degree in business, finance, accounting, or related field
• 3-5 years of experience in procurement, supply chain management, or similar role
• Exceptional analytical skills with the ability to identify trends and develop recommendations
• Strong attention to detail
• Excellent verbal and written communication skills
• Proficient in Microsoft Office, with aptitude to learn new software and systems

Preferred Skills and Qualifications

• MBA or other advanced degree
• CPP or APICS certification
• Experience with enterprise resource planning (ERP) systems
• Working knowledge of statistical analysis software, such as SAS, SPSS, or R