Procurement AnalystVS Procurement Specialist – What’s the Difference?

So when your guys at Procurement Tactics first heard about the procurement specialist role, we actually had a very interesting conversation on the difference between the procurement specialist and the procurement analyst.

So far, the procurement analyst is someone who develops various methods to procuring and contracting external support from suppliers that are in line with current industry standards.

Wait a sec, isn’t that the same as with the role of a procurement specialist?

Well, not exactly. The procurement analyst has a more defined role in creating strategies for procuring materials. While there is research involved as to who is the best supplier out of the list to award the contract to, that is pretty much their job scope. 

Meanwhile, the Procurement Specialist is someone who is more well-rounded with his tasks. He/she may have some analytics to check on, but he/she also has other procurement tasks to perform too, such as checking the supplies to make sure that they are of the highest quality.

There is also a difference in which stage of the procurement process these guys work in. The procurement specialist is, again, well-rounded since his/her tasks allow the procurement manager to put him from the sourcing of potential suppliers until the awarding of contracts during the later part of the process. The procurement analyst, however, works during the sourcing part of the process since his/her tasks are heavily involved in the purchasing part.

It’s also not surprising that the procurement analyst is also called the purchasing analyst.

Job Description of  a Procurement Specialist

As we told you earlier, a procurement specialist acts as the quality assurance officer of the procurement team. However, a procurement specialist also has other responsibilities in procurement.

Here are some other responsibilities of a procurement specialist to give you an overview of the following contents of the article:

• Research products
• Cost analysis
• Inventory control
• Contract negotiation
• Projecting future needs

Aside from having a bachelor’s degree in business administration or supply chain management,  many companies that look for a procurement specialist are also checking their skills. Here are some skills that you need to have to become a great procurement specialist:

• Negotiation skills
• Knowledge of purchasing strategies
• Problem-solving skills
• Analytical skills
• Proficiency in using procurement and other business-related software

Procurement SpecialistSalary Rate for 2023

So we’ve come to the part why a lot of our students are all spending a good amount of money and effort to sharpen their skills in negotiation and procurement. It’s time to talk about how much money a Procurement Specialist may earn for 2023.

As everyone knows, there may have been a lot of challenges in the procurement industry, but it continues to remain strong. Various procurement jobs are still raking in the dough, as we speak. This is because even if a global pandemic is raging all over the globe, there is no shortage of the need for supplies. Companies will remain to continue their procurement of highly-valued goods and/or services, especially if it helps with company growth or if it’s needed for the company to continue working.

Without further ado, let’s talk about how much a procurement specialist earns. As of January 25, 2022, the Average Base Pay of a Procurement Specialist in Australia is around $94,801 per year. The lowest base pay is at $70,000 while the highest is at a whopping $131,000 per year.

Looks like Australia is the best place to be then if you’re planning to strike it rich as a procurement specialist!

As for the Average Base Pay of a Procurement Specialist in the United States, the base pay is at $ 62,968 per year. The lowest base pay is at $ 40,000 while the highest is at $ 94,000.  

The Responsibilitiesof a Procurement Specialist

As mentioned earlier, the procurement specialist has a well-rounded set of responsibilities in the procurement team. These guys are in charge of making sure that the whole procurement process is working and that the supplies the company procured are in good condition. 

While their responsibilities and specialization may shift according to what the company needs, the procurement specialist’s tasks are always linked to sourcing goods and services for the organization. As such, his/her daily responsibilities always include the following:

1. Research

Procurement managers evaluate and compare products and services to determine which best meets the organization’s needs.

2. Cost analysis

Obtaining goods at the right cost can determine whether the company achieves profitability. Cost is also a factor when setting prices for the company’s products or services which must be in line with what the market will support.

3. Inventory control

Often, the procurement specialist oversees the inventory of raw materials or other goods and places orders when supplies run low.

4. Contract Negotiation

Negotiation is a major share of the procurement specialist’s job. After securing the best pricing, terms, and delivery options for each product or service, they settle the contract.

5. Projecting Future Needs

Not only do procurement specialists manage current needs, they strategize with various departments and suppliers to ensure the organization’s future needs will be seamlessly met.

Procurement SpecialistEducation

To work as a procurement specialist, a minimum of a bachelor’s degree is usually a requirement. Business Administration, Finance, Logistics, and Supply Management are the usual degrees for procurement specialists.

Students usually complete some kind of training such as an internship during their education to get to see the actual job of a procurement specialist.

Procurement SpecialistExperience

Some organizations that hire procurement specialists require them to have prior experience with the job. However, some organizations also hire entry-level candidates and train them within the company. 

Some hiring managers may ask the candidates if they have a certification that they have during employment.