In order to secure advantageous contracts, procurement analysts operate as intermediaries between their companies and suppliers. In addition to reviewing and assessing possible suppliers, negotiating contracts, and creating monthly supply cost reports, they manage the procurement process in a business. They are primarily used by businesses whose methods of product distribution rely on supply chain management. Consequently, if you have a keen interest in logistics and supply chain management, this could be a fantastic career choice for you. If this is you, then learning more about this profession and how to become a procurement analyst could help you determine your next career steps. In this article, we explain what procurement analyst is and what they do, without leaving out the salary they make.
What is a Procurement Analyst
A procurement analyst is an expert who analyzes products from suppliers to decide which ones the business should purchase. On their to-do list may include; meeting with vendors, testing items, producing cost reports, and negotiating supply contracts. Candidates should hence take this as an indication of the level of commitment required for a career in procurement.
The job of a procurement analyst, also known as a purchasing manager or purchasing analyst, is to research and choose reliable vendors for an organization. An organization can benefit from the services of a procurement analyst if it has to source products, materials, or services from outside the company. They generally investigate the market and rank the suppliers according to price, delivery time, and quality.
What Does Procurement Analyst Do
In accordance with current industry norms, procurement analysts spend time establishing various strategies for obtaining and hiring external support from the market. This includes investigating possible suppliers, acquiring data from vendor databases, and screening candidates, while also selecting which contracts to award. However, following the contract’s award, the performance also requires close monitoring for the duration of the agreement.
Having purchasing agents on staff could be advantageous for any firm that has to buy goods or services from another business. Regardless of whether they have that job title or not, even small organizations frequently have someone in such a position.
The duties and roles of procurement analysts may include:
- Best practices for purchasers, managing material requirements planning (MRP), and data maintenance
- Establishing and managing the work breakdown structure (WBS).
- Managing inventory restocking procedures at the SKU level and addressing any alterations or problems that may occur
- Ensure that targets are met for cost, service, and quality standards across all operational centers by managing suppliers’ key performance indicators (KPIs).
- Keeping an eye out for market developments and being proactive.
- Making choices in light of data analysis.
- Helping to oversee several projects
- Obtaining bids, shopping, and handling transport logistics for all operational needs
- Collaborating with senior management on requests for proposals (RFP) and quotes (RFQ), while also delivering thorough reports on vendor response
- Receiving, examining, and making changes to purchase orders, bid documents, and RFPs to preserve departmental policy and regulation compliance
- Going over agreements and making new ones.
What Skills Do You Need to Be a Procurement Analyst?
Expertise with word processors and database management systems is a prerequisite for procurement analysts so that they can easily request, create, approve, and keep tabs on contracts and other associated procurement papers.
Successful procurement analysts are sharp thinkers with excellent interpersonal, communication, and presentation abilities. These abilities help them to establish and manage relationships with suppliers, expedite the purchasing process, and analyze data for cost-reduction opportunities. In addition, data interpretation skills are essential, to effectively employ many sources of data in the proposal-making process. Analysts also need to be able to articulate complex ideas in simple terms, both verbally and in writing.
Is Procurement Analyst a Good Career?
Yes, a career in procurement may be fairly rewarding. Jobs in procurement frequently pay well, and have a positive job outlook, while also offering the chance to travel and have an impact on society.
Careers in procurement include those of buyers, analysts, and agents, all of whom are responsible for acquiring the goods and services that businesses rely on to function.
They generally manage an organization’s procurement process, identifying the business’s needs, assessing potential suppliers, and negotiating favorable purchase terms. This could be an excellent professional opportunity for anyone with an interest in logistics and supply chain management.
Salary for Procurement Analyst
When it comes to procurement analysts or any other profession, this is the section that everyone is most enthusiastic about. Every individual before going into one career or the other generally focuses on the salary and other perks it comes and the same for a procurement analyst. So, how much do procurement analysts earn?
The national median salary for a procurement analyst, according to the Bureau of Labor Statistics, is $59.620. However, the highest-performing procurement analysts earn over $99,300, while those who perform poorly still earn a respectable $34,940 a year.
Maryland, Virginia, and New Jersey had the highest median incomes for procurement analysts at $77,100, $73,000, and $72,900, respectively.
But what about government-employed procurement analysts? The average annual salary of a procurement analyst employed by the federal government is above $60,000, according to the Bureau of Labor Statistics. The same is true for procurement analysts who work for manufacturers, enterprises, and corporate management.
How to Become a Procurement Analyst
Starting a career as a procurement analyst can definitely pay out. You can nevertheless become a Senior Buyer, a Procurement Specialist, or a Procurement Manager at a later stage.
Regardless, you can take into account doing the following to assist you in your quest to become a procurement analyst:
#1. Earn a Bachelor’s Degree
With a high school diploma, you might be able to start a career as a procurement analyst, but most employers prefer applicants for this position who have a bachelor’s degree in a related field. Think about obtaining a degree in one of the following disciplines:
- Accounting
- Business
- Business management
- Economics
- Finance
To assist you advance your technical abilities, you can enroll in a range of courses. You can learn more about the supply chain, corporate logistics, and the procurement process by taking business classes. You might also improve your analytical reasoning with math classes. In another words, you could improve your communication abilities by taking English and language classes to work with other supply chain experts.
#2. Think About Obtaining a Master’s Degree
For this employment, a master’s degree might not be necessary. However certain employers might insist on or prefer candidates with graduate degrees. A Master of Business Administration (MBA) is a possibility. You can study general business or perhaps one of the following specialties in an MBA program:
- Gain practical experience at the ground level.
- Supply chain administration
- Supply chain management
- Purchasing and supply chain management
#3. Gain Practical Experience at the Ground Level
Consider working in entry-level employment to obtain experience after completing your school. For instance, through on-the-job training, a lot of procurement analysts pick up technical supply chain knowledge. However, when applying for entry-level positions to help you get experience in a relevant area, take your career ambitions into account. For instance, if working in the construction industry is your aim, you might submit an application for entry-level jobs in the industry’s supply chain;
- Junior analyst for procurement
- Junior logistics analyst
- Procurement expert
- Supply-chain expert
#4. Think About Getting Certified
Although it might not be a requirement for this career, a certification might help you land a challenging or advanced position. Employers may value candidates who can demonstrate their competence through certification programs. Therefore, if you’re looking to hone your technical skills, you might want to check out supply chain and procurement certifications.
Some of the certifications that can help you in this instance include;
- The American Production and Inventory Control Society (APICS) grants this certification to anyone working in the supply chain. Through APICS, you can satisfy professional development requirements and test for this certificate.
- The American Purchasing Society gives purchasing agents the Certified Purchasing Professional (CPP) designation, which can aid procurement analysts in gaining useful purchasing skills and expertise. You can apply online and complete a training course to obtain this certification.
- The Institute for Supply Management (ISM) offers CPSM (Certified Professional in Supply Management) certification. In general, the ISM demands at least three years of expertise in the supply chain before you can pass the certification exam.
#5. Improve Your Career Profile
You can start to advance in your position as you gain experience in the process. When submitting an application for a senior position, think about checking your résumé to make sure your most recent degrees, certificates, and training are there. You can also proceed with an internal promotion or submit an application for external positions at new organizations.
For instance, some procurement analysts start out in a junior procurement position before rising to a senior procurement analyst position within their organization. These advanced procurement positions typically ask for at least five years of relevant experience. This, however, varies by business and sector.
What Is the Highest Salary of Procurement Analyst?
The median salary of a Procurement Analyst in the United States is $82,825 as of the 21st of June, 2023.
In case you’re trying to figure out how much money you’ll be making, that comes out to about $39.82 per hour. That’s $592 per week or $6,902 per month.
Although ZipRecruiter has salaries of Procurement Analysts ranging from $117,000 to $37,500 annually, the median salary is now $47,000 (25th percentile), the 75th percentile salary is $116,500, and the 90th percentile salary is $116,500. There may be many prospects for development and better compensation for a Procurement Analyst dependent on skill level, region, and years of experience, as the average salary range varies substantially (by as much as $69,500).
Is Procurement a Stressful Job?
Meeting tight deadlines and managing several goals frequently appear to be the primary sources of stress for many procurement professionals.
so, yes. Depending on where in the world your suppliers are located, you may need to put in some unorthodox hours to accommodate their various time zones. The high stakes involved across multiple time zones and departments can be stressful.
What Is the Next Step After Procurement Analyst?
After becoming a procurement analyst, the next logical step is to become a purchasing manager. These experts make purchases from suppliers, either to resell or utilize internally. They check the goods for flaws, manage the purchasing department and its agents, and negotiate prices.
Conclusion
Procurement analyst is no doubt a promising career considering the rate at which the job is expected to grow as well as the salary and other perks that come with it.
In this role, your job may include negotiating supply contracts, interacting with vendors, testing products, and providing cost reports. The vendor liaison may also be responsible for facilitating contact between the company and its suppliers. In addition, a procurement analyst should be comfortable interacting with suppliers and making purchases independently. These professionals generally work in supply chain management or manufacturing, together with buying managers and analysts.
Related Articles
- PROCUREMENT MANAGEMENT: Meaning, Benefits, Strategies & Steps
- WHAT IS PROCUREMENT IN BUSINESS: Definition, Types & Process
- PURCHASING MANAGER: Job Description, Salary & How to Become One
- How Procurement Consultants Help Businesses Save Money and Increase Value
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