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Procurement Analyst 2023: Ultimate Career Guide + Salary Guide
A procurement analyst plays a crucial role in evaluating and selecting suppliers, analyzing costs, and managing supplier relationships.
To become a successful procurement analyst you need a diverse skill set.
Key responsibilities of a procurement analyst include identifying supply needs, researching suppliers, negotiating contracts, and generating supply cost reports.
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 for 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.
What is a Procurement Analyst?
A procurement analyst is someone who evaluates supplies from vendors to determine which ones the company should buy. Duties may include meeting with vendors, testing products, creating cost reports, and negotiating supply contracts. This should give applicants an idea that working as a procurement specialist needs dedication and commitment.
Apart from the duties mentioned above, other duties of the procurement specialist may include the following:
- Providing procurement managers with analysis on e.g. raw material development, market situations, supplier landscape, latest news on current supplier base
- 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
- Negotiate supply contracts. These include prices, shipping methods, and delivery timelines.
The Qualifications of a Procurement Analyst
Think you can become a procurement analyst? Then why don’t you give it a shot?
To become a procurement analyst, you’ll need a diverse set of skills for the job. The said skills include the following:
- Extensive experience in checking the vendors that work with a company based on price, quality, and availability.
- Sound knowledge of hardware and software procurement.
- Knowledge of MWBE monitoring and evaluation.
- Solid understanding of business management, supply chain management, strategic sourcing, and eProcurement.
- An expert in creating accurate forecasts to meet retailer and supplier demands.
- Impeccable negotiation and decision-making skills on top of good written and verbal communication skills
Apart from the skills needed for the job, your educational attainment should also be in line with the procurement analyst career path. For those who are interested in becoming a procurement analyst, one should earn a Bachelor’s degree first and foremost.
Employers are looking for those who hold a degree in Engineering, Accounting, Business, or Finance. This is reasonable since procurement analysts spend a lot of time calculating, comparing, and analyzing the costs of working with suppliers. These skills are often taught through coursework in financial accounting.
Apart from financial and business skills, communication skills are also an integral part of becoming a procurement analyst. Communication skills are usually learned through coursework in communication studies, usually through a class in business communications.
After the educational training, there is also a need for applicants to undergo on-the-job training before they can finally graduate. On-the-job training lasts over one year with procurement analysts being taught how to perform the basic duties of procurement analysts. The duties consist of SAP business management software and spreadsheet analysis.
Finally, there is a need for applicants with impeccable negotiation skills. Procurement analysts always go through the rigid process of negotiation training. They say that negotiation is a skill that can only be acquired through experience. That much is true. However, we at Procurement Tactics take all those years of experience and come up with a course that takes all the lessons we’ve acquired through years of negotiations so that we can help up-and-coming procurement analysts become top negotiators themselves.
We are talking about the Negotiation Course For Procurement Professionals. Have a look at our courses today and become the edge of your procurement team.
How Much Do Procurement Analysts Make?
This is the part where everyone is always excited about when it comes to procurement analysts.
So just how much money do procurement analysts make?
According to the Bureau of Labor Statistics, the national median for Procurement Analysts is $59.620. The top-performing procurement analysts though make above $99,300 while the procurement analysts who are not performing well are still making a good wage at $34,940.
The states that have the highest median salaries for Procurement Analysts are Maryland ($77,100), Virginia ($73,000), and New Jersey ($72,900).
But what about procurement analysts who work in the government? According to the Bureau of Labor Statistics, procurement analysts who work in the federal government earn an average of more than $60,000 per year. The same can also be said with procurement analysts who work for company management, enterprises, and manufacturing.
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 to 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
Are you interested now in becoming a procurement analyst?
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 for anyone who needs help in becoming a procurement analyst. These groups often have libraries of online video courses and tutorials that can help you get that procurement analyst job.
Websites You Can Visit to Search For a Job
Today, searching for a job opportunity is easy. You do not even need to go out of your house in order to find one. You just need to open your laptop, type the job title in the search box, and numerous job opportunities will pop up.
Additionally, many job websites can help you find the procurement analyst job that suits you well. Here are some job websites that we recommend:
Indeed is the most popular job website in the world. It has numerous job listings which you can check to submit an application. Additionally, Indeed is free but you need to create an account to be able to receive email alerts, upload your resume, and receive messages from potential recruiters.
Glassdoor is one of the job websites that comes to mind when we search for jobs on the internet. Glassdoor enables you to see the salary, employer information, and 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.
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, search queries, and sign up for email alerts when new jobs are listed on the website.
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.