Written by Marijn Overvest | Reviewed by Sjoerd Goedhart | Fact Checked by Ruud Emonds | Our editorial policy
Procurement Analyst 2024: Ultimate Career Guide + Salary Guide
Key takeaways
- A procurement analyst evaluates suppliers/vendors to achieve their company’s purchasing goal.
- Procurement analysts oversee the procurement process and help companies by advising on the right suppliers and products.
- A procurement analyst optimizes business operations by securing cost savings, fostering strong supplier relationships, and ensuring efficient acquisition of resources.
Do you have what it takes to become a procurement analyst? Or are you already an analyst and want to learn how you can improve your skills?
Becoming a procurement analyst may sound like an amazing deal since most procurement jobs nowadays pay well. However, one should also learn about the responsibilities the position entails. That is what we are going to talk about in today’s article.
We are going to learn what a procurement analyst is, what he/she does, and all other aspects of the job that you need to learn to become a (more) effective procurement analyst.
I have created a free-to-download editable procurement process: 7 steps template. It’s a PowerPoint file, together with an Excel file, that can help you with your goals as a procurement analyst. I even created a video where I’ll explain how you can use this template.
What is a Procurement Analyst?
A procurement analyst evaluates suppliers/vendors to achieve their company’s purchasing goal. This role’s duties include vendor engagement and product testing. The process helps the company’s procurement team avoid supply and product uncertainties. All while achieving goals and objectives. Other procurement specialist duties include the following:
- Providing procurement managers with analysis of prevailing factors (market and environmental.)
- Choosing vendors based on the cost and quality of the materials
- Ensure deliveries are made on time.
- Maintain communications between the suppliers and the company
- Issue delivered purchase orders to suppliers
In my experience as a procurement manager and lead procurement analyst at Ahold Delhaize and Royal Friesland Campina, I have had the opportunity to collaborate with various sourcing analysts.
To start with a misconception about procurement analysts: analysts are not assistants and have a completely different profile and level of expertise. The similarity is that both are supportive of the Procurement Manager.
The difference is that a procurement analyst does this, among other things, by conducting various analyses that help the procurement manager in their negotiations.
Two great examples from my experience are as follows:
1. For preparations for negotiations, our team created a tool to track relevant raw materials. When procurement managers negotiated, they could counter suppliers if they came with price increases.
2. Another tool that built on this was the cost breakdown we created so that procurement managers could even see at the product level what a good price would be. In both cases, I am convinced that we added a lot of value, and every company should consider how procurement analysts can add value to a business.
The Qualifications of a Procurement Analyst
In performing the procurement analyst role, you need a diverse skill set. This skill set helps you traverse the complex procurement landscape. Below are the following skills you’ll need:
- A procurement analyst must excel in data analysis and data interpretation. This skill helps teams identify procurement trends and drive decision-making.
- Analysts must create actionable reports to guide companies with their insights. This skill helps companies process their procurement performance.
- These analysts must understand how ERP systems work in tandem with modern procurement. This process makes the data flow smoother and data management easier.
- Opportunity identification is crucial for analysts in improving efficiency and recognizing cost values.
Your educational attainment must match the procurement analyst career path. This alignment makes the work transition smoother. A bachelor’s degree emphasizes this value. Also, it serves as proof of dedication to the career. Additionally, employers also look for degree-holders in the following:
- Engineering
- Accounting
- Business
- Finance
The financial knowledge from these degrees can improve cost-related aspects of the work. Learning communication skills are also integral in this procurement role. It helps these individuals maintain communication lines smoothly. This process prevents misunderstanding and uncertainties. Moreover, it has a positive impact on supplier relationships.
Candidates must also engage in on-the-job training after the educational task before graduating. This training lasts over one year with procurement analysts learning basic procurement duties. It includes using SAP business management software and spreadsheet analysis.
How Much Do Procurement Analysts Make?
This is the part that everyone is always excited about when it comes to procurement analysts. So, just how much money do procurement analysts make?
According to Indeed, a US Procurement Analyst’s average annual salary is $82,224. The top-performing procurement analysts though make as high as $125,668. On the other hand, the procurement analysts who are not performing well are still making a good wage at $53,798.
While in The Bureau of Labor Statistics shows an average of more than $60,000 per year. The information is also similar for procurement-related sectors.
Duties and Responsibilities of a Procurement Analyst
- Finding supply needs and researching potential suppliers.
- Communicates the pricing and performance needs to vendors and suppliers.
- Sourcing suppliers and vendors and testing the product samples
- Documents the benefits of products and services.
- Prepare cost-benefit analysis reports for the managers to review.
- Negotiates beneficial procurement contracts with potential vendors and suppliers
- Records the processes and generates monthly supply cost reports
- Monitor the organization’s demands.
Groups That Will Help You Become A Procurement Analyst
Do you love the procurement field? Do you derive more energy from analyzing and interpreting data? Is it better than engaging in uncomfortable negotiations? Then, a career as a procurement analyst may be perfect for you.
If your answer is a big resounding “YES”, then eyes on the table below. We’ve compiled important data that can help you in your search to become a procurement analyst.
They offer extensive support and resources to help you become a procurement analyst. These groups have libraries of online video courses and tutorials, helping you get that procurement analyst job.
Websites You Can Visit to Search For a Job
Today, searching for a job opportunity is easy. With the push of technology, everything is smoother. You need to open your laptop, type the job title in the search box, and many job opportunities will pop up.
Additionally, various websites can help you find a procurement analyst job. Select the one that suits you well. Here are some job websites that we recommend:
1. Indeed
Indeed is the most popular job website in the world. It has many job listings which you can check to apply. Additionally, it is free but you need to create an account. You’ll receive vital information, boosting your job-searching tasks!
2. Glassdoor
Glassdoor is another efficient and effective job-finding website. It enables you to see the salary and employer information.
It also shows employee reviews of a company to help you decide whether you want to apply for that company.
It is also free of use but you need to create an account if you want to receive email alerts and upload your resume.
3. Foundit
Foundit, formerly known as Monster, helps you to find the dream job that you want. Like Indeed, it caters to job seekers from all experience levels and work styles.
Just like the two websites we mentioned earlier, it is free. But, you need to have an account for you to save job positions. Also, save search queries, and sign up for email alerts when new jobs appear on the website.
1st Procurement Expert’s Advice on Procurement Analyst
Before you continue reading, check these insights from a seasoned procurement professional regarding procurement analyst.
Sjoerd Goedhart
Owner, Goedhart Interim Management & Consultancy
LinkedIn Profile: https://www.linkedin.com/in/sjoerdgoedhart/
1. Can you share a personal example of being a procurement analyst? What can readers learn from it?
“I worked during the Ukraine crisis for a big food retailer. The impact of the crisis was huge and many A-brand and private-label suppliers wanted to intermediate increase their prices.
To avoid paying too much price increase, it’s essential to have a good understanding of the impact of the crises on the supplier and to know exactly what the impact per product is.
In this situation, the role of a procurement analyst is essential to have his/her knowledge about this topic, the input during the preparations, and their point of view on what is realistic to pay and what is not, and to have this person besides during the negotiation with the supplier.”
2. What should readers know about procurement analysis?
“I will help a lot to have well-qualified procurement analysts in the procurement team. The position of procurement analyst is a very good basis for becoming a successful procurement officer.”
3. What is the biggest misconception about procurement analysts? What do most people get wrong about it?
“In my opinion, is that people think that the position of procurement analyst is a sort of assistant to the procurement officer. This is not! A procurement analyst is leading in analyzing trends and developments, informing and guiding the procurement officers in their (negotiation) strategy.”
4. What are the key skills and tools a procurement analyst should master in today’s market?
“Today it’s important to have interest in and knowledge about the raw material markets. A procurement analyst should have a deep understanding of the dynamics of the raw material market.”
5. How has the role of a procurement analyst evolved with the advent of digital transformation?
“Driven by digital development, the role has evolved because there are many more digital tools available to capture data, but also an increase in the available data.
It becomes important, therefore, to determine which data is truly relevant and how to capture it to have the right management information and translate it into strategy and actions.
With the rise of AI, there will once again be a rapid development in the role of a procurement analyst, as AI makes certain tasks obsolete but also requires new skills and provides new insights that need to be translated into strategy and action.”
6. Is there a difference between a procurement specialist and a procurement analyst?
“A procurement analyst is more focused on analyzing data and optimizing procurement processes. A procurement specialist focuses on the research for suppliers of goods and services, asking for quotes, proposals, purchase terms and conditions, and executes the purchase of goods or services approved by management.”
7. In practice, what is the main job of a procurement analyst?
“To support a procurement officer in analyzing the supplier market, its trends, and dynamics, consolidate relevant information about suppliers, and support the officer in preparation for the negotiations.”
2nd Procurement Expert’s Advice on Procurement Analyst
For this article, we asked another experienced procurement expert to share her insights to help answer common questions about procurement analysts.
Faiza Iftikhar
Co-Founder, Procura
Pakistan
LinkedIn Profile: linkedin.com/in/faiza-iftikhar
1. Can you give us an example of what you did when you were a procurement analyst?
“Yes, there are very fluctuations in the dollar. Mostly Pakistan does import It looks like Pakistan is a consumer country so it’s very important to make a buffer stock. Order on time is very important. And know the supplier trends in Pakistan. Make a scorecard for the supplier.
Always must have alternate suppliers and must know the capabilities of suppliers. And further I would have analyzed purchasing data, identified cost-saving opportunities, assessed supplier performance, and recommended procurement process improvements based on data-driven insights.”
2. What does it like to be a procurement analyst?
“Being a procurement analyst is a highly challenging role as it involves navigating numerous obstacles to secure high-quality products at competitive prices.
Supplier evaluation and lead time management are critical aspects of this challenge. The role demands a keen ability to analyze data, assess supplier performance, and optimize procurement processes to achieve cost savings while ensuring the availability of essential goods and services.”
3. What’s the most important lesson you learned as a procurement analyst?
“Procurement analyst is the significance of data accuracy and analysis in making informed decisions and achieving cost savings in procurement processes.”
Conclusion
In conclusion, the role of a procurement analyst offers a promising career path with its accompanying responsibilities requiring dedication and commitment. From vendor evaluation and supply chain management to negotiation skills, aspiring procurement analysts must possess a diverse skill set.
Professional groups and online resources like the Chartered Institute of Procurement and Supply, the Institute for Public Procurement, and popular job websites offer valuable support for those aspiring to embark on a fulfilling career as a procurement analyst.
Frequentlyasked questions
What is a procurement analyst?
A procurement analyst is someone who checks the supplies and decides who to get the supplies from for the company.
How to become a procurement analyst?
To become a procurement analyst, you need to have a Bachelor’s Degree in Engineering, Business, or Finance. You also need to have good conversation and negotiation skills.
What is the salary of a procurement analyst?
The average salary of a procurement analyst is $59,000 per year.
About the author
My name is Marijn Overvest, I’m the founder of Procurement Tactics. I have a deep passion for procurement, and I’ve upskilled over 200 procurement teams from all over the world. When I’m not working, I love running and cycling.
