Procurement Analyst Job Description
Procurement Analysts play a key role in the supply chain management process. Their primary responsibility is to serve as the liaison between their employer and vendors. Any company who sells products relies on supply chain management, so Procurement Analysts are employed in virtually every industry. Their duties involve sourcing and vetting vendors, negotiating contracts and presenting deals to decision makers.
The role of Procurement Analyst is a white-collar position that typically requires at least a Bachelor’s degree to obtain employment. This role may also be called Purchasing Analyst or Purchasing Agent. Employers typically prefer candidates with degrees in engineering, accounting, business or finance. According to the Bureau of Labor Statistics, the employment rate is set to rise two percent through 2024.
Procurement Analyst Duties and Responsibilities
2014 - Present
Reviewing and processing requisitions to ensure timely order submission and negotiating costs, delivery schedules and contract terms.
Creating and analyzing documented comparative costs submitted by suppliers in the RFx process.
Monitoring and updating item, commodity and other tables as given in running PO software application.
Establishing pricing and performance standards through contracts with suppliers.
There are several duties and responsibilities involved in the process of identifying and selecting vendors. The following list is composed of the most common duties and responsibilities, which we have compiled from our analysis of Procurement Analyst job descriptions.
Inspect and Test Vendor Products
Procurement Analysts are responsible for inspecting and testing samples of whatever the vendors in their industry are selling. They document features and benefits of each product and use this information to make their final purchasing decision.
Communicate Company Needs With Vendors
Procurement Analysts are responsible for understanding the needs of their employer, and then communicating said needs with potential vendors. This is an integral part in choosing the best vendors.
Negotiate Supply Contracts With Vendors
Procurement Analysts are ultimately responsible for closing deals with vendors. This requires good negotiation skills, as there is often big money on the line. It also requires written communication skills to draft vendor contracts.
Evaluate and Compare Vendors
Procurement Analysts have to be experts at the cost-benefit analysis. They constantly use this analytical tool to compare vendors and choose the one that best fits the needs of their employer.
Document Costs and Generate Reports
Procurement Analysts are responsible for documenting the costs for all vendors, as well as generating monthly cost reports to present to stakeholders. They are also responsible for documenting the communication cycle with potential vendor leads, for which they typically use Customer Relationship Management (CRM) software.
Procurement Analyst Skills
Summary of Qualifications
Extensive experience in evaluating the vendors that work with a company based on the vendors price, quality, and availability.
Sound knowledge of procurement of hardware and software and MWBE evaluation and monitoring.
Solid understanding of Business management, supply chain management, strategic sourcing, and eProcurement.
Proficient in making accurate forecasts to meet the retailers demand and taking part in new product launches for maintaining daily inventory.
Procurement Analysts rely on a combination of soft skills and technical knowledge of their specific industry in order to do their jobs well. Regardless of industry, Procurement Analysts have to be analytical thinkers who are able to process a lot of information, and make decisions based on said information. Procurement Analysts also have to be comfortable speaking in front of small groups, as they often find themselves presenting their opinions to stakeholders on both side of the process.
We analyzed dozens of Procurement Analyst job descriptions to put together the following list of core skills employers are looking for most in candidates.
Analytical Skills: Given that “ Analyst ” is in the job title, it is no surprise that Analytical Skills are essential for Procurement Analysts. They call upon their analytical skills to compare vendors based on a variety of factors and making a decision that best benefits their employer.
Written and Verbal Communication Skills: Procurement Analysts use their written communication skills to write the final contract used for vendors. They must be excellent writers, as one small mistake can change the meaning of the language in a contract.
Negotiation Skills: Procurement Analysts call upon their negotiation skills to get the best terms possible from vendors. This involves having a deep understanding of their employer’s goals and budget.
Decision Making Skills: A primary responsibility of Procurement Analysts is deciding whether or not to purchase from a particular vendor. Without decision-making skills, Procurement Analysts would have a hard time doing their jobs.
Collaborative Skills: Procurement Analysts have to work with multiple departments within an organization to understand their needs. They also closely work with the accounting department when negotiating costs of vendor contracts.
Procurement Analyst Salary
According to the Bureau of Labor Statistics, the national median salary for Procurement Analysts is $59,620. Those in the top 10 percent make above $99,300, while those in the bottom 10 percent make below $34,940. The three states with the highest median salaries for Procurement Analysts are Maryland at $77,100, Virginia at $73,000 and New Jersey at $72,900.
Procurement Analyst Education Requirements
As mentioned earlier, obtaining employment as a Procurement Analyst first requires one to earn a Bachelor’s degree. Employers seek those who hold degrees in fields like Engineering, Accounting, Business or Finance.
Most of the duties of Procurement Analysts involve calculating, comparing and analyzing the costs of working with vendors. They learn this knowledge through coursework in financial accounting. Procurement Analysts learn their communication skills through coursework in communication studies, typically through a business communication class.
Those looking to quickly progress up the Procurement Analyst career ladder into a management position earn an MBA in supply chain management.
Procurement Analyst Resources
Do you think a career as a Procurement Analyst fits your interests? If so, keep exploring with our resource list below.
The Chartered Institute of Procurement & Supply – The CIPS is a global organization composed of professionals who span the spectrum of procurement and supply. They boast a membership of over 103,000 members in over 150 countries, many of which are Procurement Analysts. Membership includes access to certifications, study centers and a monthly industry magazine. The website is also updated with industry news free to any visitor.
The Institute for Public Procurement – This organization has a strong mission statement that attracts those looking to build a better world through their work. Their website contains a free document library, and it is a great way to further explore both this organization and the procurement career path.
Council of Supply Chain Management Professionals – This organization is one of the premiere professional organizations for supply chain management professionals. They offer tons of resources to members on their website, which includes online courses, educational videos and industry case studies. They also offer a three-level certification for supply chain professionals.
Supplychaininsights.com – This website is an excellent resource for all supply chain professionals. It has an extensive archive that costs virtually every aspect of supply chain management. It is a great resource for aspiring Procurement Analysts.
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