Procurement Career Paths

Job Title: Procurement Analyst

Location: [Insert location]

Reports to: [Insert name and title of supervisor]

A procurement analyst is a professional responsible for assessing and choosing suppliers for a company. They assist organizations in finding suitable suppliers when external items, materials, or services are needed.

Key Responsibilities: 

• Identifying the supplies or materials needed for company operations.
• Researching potential suppliers for required items or materials.
• Assessing suppliers based on pricing, shipping times, and product quality.
• Testing new items to ensure they meet quality standards.
• Communicating with suppliers regarding purchases.
• Negotiating prices and terms of purchase.
• Managing procurement contracts between the company and suppliers.
• Tracking invoices and costs through recordkeeping.
• Reviewing costs to align with budget requirements and enhance supply chain efficiency.
• Monitoring supply demands to maintain adequate inventory for production or operations.

KPIs for this role

• Compliance rate: Compliance rate refers to the procurement analyst’s level of adherence to rules or regulations.
• PO accuracy: Low purchase order (PO) accuracy results in increased operating costs.
• Rate of emergency purchases: The emergency purchase ratio is the proportion of unplanned purchases to total purchases within a specific timeframe.
• Supplier lead time: Supplier lead time is the duration between order receipt and shipment.
• Spend under management: Spend under management indicates the portion of procurement spend controlled or overseen by management.
• Procurement ROI: Procurement ROI assesses the profitability and cost-effectiveness of procurement investments.

Key Skills and Qualifications: 

• A Bachelor’s Degree in Business, Finance, Economics, Accounting, Business administration, or related field
• Experience in supply chain management is advantageous
• Familiarity with SAP ERP software
• Strong organizational skills

• Identifying the supplies or materials needed for company operations.
• Researching potential suppliers for required items or materials.
• Assessing suppliers based on pricing, shipping times, and product quality.
• Testing new items to ensure they meet quality standards.
• Communicating with suppliers regarding purchases.
• Negotiating prices and terms of purchase.
• Managing procurement contracts between the company and suppliers.
• Tracking invoices and costs through recordkeeping.
• Reviewing costs to align with budget requirements and enhance supply chain efficiency.
• Monitoring supply demands to maintain adequate inventory for production or operations.

• Analytical reasoning: Procurement analysts evaluate suppliers and product information, comparing factors like costs and shipping times.
• Communication: They collaborate with supply chain and finance teams to determine supply needs and budget guidelines, and regularly communicate with suppliers.
• Negotiation: Procurement analysts negotiate prices for goods or services to find the best deals.
• Decision-making skills: They decide which products and suppliers are best for the company’s budget and objectives.
• Technical knowledge: Procurement analysts use industry-specific knowledge about items, materials, and production processes to make informed decisions.

• Compliance rate: Compliance rate refers to the procurement analyst’s level of adherence to rules or regulations.
• PO accuracy: Low purchase order (PO) accuracy results in increased operating costs.
• Rate of emergency purchases: The emergency purchase ratio is the proportion of unplanned purchases to total purchases within a specific timeframe.
• Supplier lead time: Supplier lead time is the duration between order receipt and shipment.
• Spend under management: Spend under management indicates the portion of procurement spend controlled or overseen by management.
• Procurement ROI: Procurement ROI assesses the profitability and cost-effectiveness of procurement investments.