Procurement Analyst

The individual in charge of the procurement analyst is supposed to implement and coordinate the activities regarding the purchasing functions of an organization. The process involves analysis based on market trends, supplier performance appraisal, and procurement analysis to establish that an organization makes effective and low-cost procurements. Data collected and reviewed will ensure the organization has justified purchases, deals in negotiation, and a good relationship with the supplier. The fundamental job of an analyst in an organization is to exercise high product and service selection grades at the lowest rate possible and, thus, in general, to guarantee a consistent level of performance and operational KPI optimization for the business.

What Is a Procurement Analyst and How to Become One

What Is a Procurement Analyst and How to Become One

A procurement analyst should choose products from vendors and reach every last detail so that making an organization’s buying decision becomes cost-effective. A career in procurement analysis is primarily concerned with the maintenance of vendor relations and the optimization of management in the supply chain. One is supposed to have a four-year bachelor’s degree in Business Management, Finance, or its equivalent, with much on-the-job training and experience. Proven expertise in supply chain management and vendor relations is a must, which is likely to enhance job prospects if complemented by voluntary certification.

What Is a Procurement Analyst?

Procurement analysts analyze vendor products to determine which products an organization should buy. They prepare and meet with vendors; they test products and prepare cost reports in addition to negotiating supply contracts. Essential duties of a procurement analyst include building relationships with suppliers. A procurement analyst must have strong relationship-building skills and make sound, practical buying decisions. Similar to other jobs in supply chain management, like purchasing managers, this job title is filed chiefly and used in the manufacturing sectors.

How to Become a Procurement Analyst

Generally, a college degree is necessary for business management or finance, though other related studies can often be enough. Most employers prefer candidates who have had significant on-the-job training and experience with the particular systems and demands of the organization. Success in this role is bolstered by a solid background in supply chain management and demonstrated experience in vendor interactions. Additionally, pursuing various voluntary certifications can enhance your job prospects and provide a competitive edge in the field.

Sample of Procurement Analyst Job Description

Here below, represents a job description of a procurement analyst to identify what procurement analysts do. On the other hand, you mustn’t forget that an employer’s demands may vary greatly, so what you need from one firm might be pretty different from another.

What are Procurement Analyst Skills

Procurement analysts comprise both technical and interpersonal skills for their roles’ daily conduction. The top skills needed for such a career include the following:

Analytical reasoning

Procurement analysts are tasked with evaluating various suppliers and product information for companies. Analytical solid reasoning helps them compare different factors, such as costs and shipping times, to make informed decisions.

What are Procurement Analyst Skills

Negotiation

These professionals frequently collaborate with supply chain colleagues and internal finance teams to determine supply needs and budget guidelines. They also communicate regularly with suppliers, using solid verbal skills to discuss contract terms effectively.

Communication

One of the components in managing contracts while purchasing goods and services may be the negotiation of price. Negotiation by procurement analysts works towards getting the best prices for the companies or clients it represents.

Decision-making skills

Procurement analysts are responsible for deciding which products the company needs and selecting the best supplier based on budget and objectives. Practical decision-making skills enable them to make confident and informed choices.

Technical knowledge

Often, experts in their industry’s supply chain and procurement analysts utilize their knowledge of items, materials, and production processes required for success in their field. For instance, a procurement analyst in the clothing industry leverages their understanding of clothing materials and manufacturing processes.

Purchasing Analyst Education Requirements

Purchasing Analyst Education Requirements

Although an entry qualification into the procurement field can be a high school diploma or GED, most procurement analyst positions will require a bachelor’s degree in business management, logistics, supply chain management, or business administration.

While many jobs do offer on-the-job training, it is usually required that a person have some experience in order to obtain a job in the upper-tier positions. The elastic career pathway of this career makes it accessible with several different degrees, including a degree in business or a degree in accounting.

Among these are the job experiences that may be slightly helpful to a purchasing manager or project manager. Other closely related jobs include administrative assistant, operations manager, buyer, data analyst, financial analyst, and project engineer.

Junior Procurement Analyst vs Senior Procurement Analyst

The procurement analyst entry positions at the junior levels have been designed with a year or less of experience and five years of experience at the senior level, with the respective salary scales. For instance, according to PayScale, the average entry-level procurement analyst in New York, NY, earns $63,154, and in Washington, D.C., the salary would be $83,083.

PayScale states that late-career procurement analysts in New York City average $79,251, and some average $104,275 in Washington, D.C.

What is the Career Path for Procurement Analysts

This beginning career for the procurement analyst opens into positions such as senior buyer, procurement specialist, and procurement manager.

Senior Buyer can be promoted to further levels such as Purchasing Manager or Supply Chain Manager. A procurement specialist can advance through their career to a procurement manager.

Automating purchases to pay would improve the existing process of reporting, reduce errors, and free procurement analysts from getting back to other more profitable tasks—for instance, negotiating with suppliers to save costs.

Becoming a procurement analyst

Below are some steps to consider on your journey to becoming a procurement analyst:

1. Get a Bachelor’s Degree

Most employers in this field prefer individuals with a bachelor’s degree in any related area, though a procurement analyst can go into this field straight out of high school. Consider a degree in:

  • Business
  • Finance
  • Economics
  • Accounting
  • Business Administration
Becoming a procurement analyst

Technical skills will be developed if you take a diverse course load. In the meantime, business classes would give insight into the procurement process, supply chain, and business logistics. Furthermore, math courses will help people think more analytically, and English and language-related courses will make them better communicators, hence enabling them to work effectively with other supply chain professionals.

2. Think about pursuing a master’s degree

You may want to look further at the Master of Business Administration (MBA). Although a master’s degree is not entirely a mandatory qualification for this profession, some employers prefer and will be likely to hire a graduate degree holder. It can be taken as general business or specialized in areas like:

  • Supply Chain Management
  • Supply Chain Operations
  • Procurement and Supply Chain Operations

3. Acquire experience in an entry-level role

Upon completing your education, seek professional experience through entry-level positions. Many procurement analysts acquire technical supply chain expertise via on-the-job training. Align your entry-level job applications with your career goals to gain relevant industry experience. For instance, if you aim to work in construction, target entry-level roles within the construction supply chain.

Consider these positions to build your procurement experience:

  • Junior Procurement Analyst
  • Supply Chain Specialist
  • Procurement Specialist
  • Junior Logistics Analyst

4. Consider earning a certification

While a certificate may not be required for this profession, one can increase your eligibility for higher-level and competitive positions. Certifications help show a prospective employer that you have this unique training. Consider gaining certifications in supply chain and procurement to develop your hard skills.

Some common certifications to consider include:

Certified Purchasing Professional (CPP)

The American Purchasing Society offers this certificate to purchasing agents and helps procurement analysts learn purchasing skills and knowledge. An application is needed, and the required training to become certified is done online.

Certified Supply Chain Professional (CSCP)

This is a prestigious certification, awarded by the highly reputed American Production and Inventory Control Society (APICS), and is targeted with utmost precision to supply chain industry professionals. In order to get this elite credential one has to complete set of comprehensive professional development programs and to pass the difficult examination as well.

Certified Professional in Supply Management (CPSM)

The grantor is the Institute for Supply Management (ISM). It usually requires ISM to have a few years of sourcing experience to follow before they can invite potential candidates to the program.

5. Progress to higher positions

Once you have some experience, you can start working toward a promotion. And, if you do apply for a promotion, make sure your resume includes your most recent education, training, and certifications. One is applying for vacancies in other companies, and the other is working for internal promotions.

For example, while most procurement analysts start as juniors in their careers, they gradually progress to become senior procurement analysts in the same organization. In most cases, senior-level positions require a minimum of five years of experience and can have additional requirements based on the employer or the industry.

Frequently Asked Questions

What is the work that a procurement system analyst does?

Procurement system analysts who are successful are not only analytical, but they also excel in their communication and interpersonal skills. This will help in establishing good relationships with suppliers so that one is able to get through the procurement process with ease and towards the data analysis on areas where costs could be saved, hence ultimately saving the company’s money.

What is a purchasing analyst?

The purchasing analysts source vendors to relay the company’s procurement needs. They also inspect and test industry samples and document them to finally decide on what to purchase. They are skilled at finding sources for vendors, cost-benefit analysis, and negotiating and setting up terms for contracts.

Is procurement analyst work challenging?

Procurement analysts often find themselves in intense negotiations with suppliers and stakeholders that are mentally tiring and challenging. There is, therefore, the pressure of time and terms, which brings about an overbearing feature of long hours and the failure to get enough rest from work, which affects personal time and relaxation.

Is it a stressful job to be a procurement analyst?

The job of a procurement analyst can be very stressful because it’s always under pressure, there is little respect coming from other departments, the “not enough” syndrome, and a limited chance of promotion.

Are the procurement analysts and the purchasing analysts the same?

Yes, procurement or purchasing analysts examine the timeliness, quality, and cost of delivery by vendors and suppliers through critical thinking skills.

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