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So are you interested in procurement? Do you have the attention to detail to keep up with all the processes? Would you feel comfortable providing insights for decision-making and building lasting relationships with a diverse group of suppliers? Working in a role closely related to supply chain and logistics makes you smile.
Then, you better keep reading on because we’ll be covering all the ins and outs of how to become a procurement analyst.
Ready for a new career path?
Let’s begin
What’s procurement?
Ideally, you already know this, but in case you need a refresher, let’s remember the basics. Procurement involves all the steps and processes that every business follows when they need to acquire goods and services to carry out their operations. It could be something as simple as office supplies or something more specific like raw materials for a new project.
What’s a procurement analyst?
Depending on the company, a procurement analyst can also be known as a purchasing manager or purchasing analyst. This professional specializes in researching and understanding all the relevant data for procurement purposes. They analyze purchasing information, supplier performance, and market trends, with this support companies can make informed decisions about their procurement strategies.
Let’s say a business is facing an unexpected situation in the market and needs to find the best supplier around, but also keep high levels of quality. A procurement analyst would be the person responsible for providing such information.
What does a procurement analyst do?
If we were to summarize the responsibilities of a procurement analyst in a single word, we would say: Evaluate.
At the core of their job, procurement analysts evaluate suppliers and vendors intending to see if they are the right match for the business they work for. Beyond that, however, there’s a list of general functions.
Research
This is probably the first thing to do in every procurement analyst's tasks list. They carry out an initial needs assessment, to determine with precision what suppliers or materials the business needs.
Supplier analysis
Once a procurement analyst knows what they are looking for, it’s time to start the actual search.
Investigate potential suppliers capable of delivering not only a good price but also quality and beneficial delivery times.
Communication
Don’t get mistaken, there’s a lot of communication involved in the role of a procurement analyst, from getting in touch with potential suppliers to negotiating prices and purchasing conditions. These people are the bridge between companies and suppliers.
Keeping records
How can you obtain relevant insights? Recording information such as supplier performance, costs, budget, and market trends, allows the analyst can identify spending patterns, detect discrepancies, and facilitate timely payments.
Procurement analyst skills
If you want to become a procurement analyst, you are going to need to invest some time in developing the following skills
Analytical Skills
As we have seen so far, there’s a heavy amount of data involved in procurement activities you’ll need to have a mastery to read between numbers and the ability to obtain patterns from complex data Above all analysts must be comfortable using statistical tools and possibly different types of software as well to complete their jobs
Attention to Detail
Remember how we started this blog? Attention to detail is fundamental as procurement involves a multitude of details, internal needs, market trends, a wide array of suppliers, contract terms, and pricing structures. Hence the necessity of always being fully aware of what are you doing.
Communication
Strong written and verbal skills are vital, procurement analysts will not only communicate with suppliers, but they will also need to send or receive information from other professionals in their team.
Negotiation
What does a procurement analyst want? To obtain the best price and quality from suppliers. The path to achieve that may include direct negotiations with chosen vendors.
Technical knowledge
Procurement analysts typically possess in-depth knowledge of the supply chain within their specific industry. This comes in handy when searching for the best option available.
How to become a procurement analyst?
Earn a bachelor's degree
This is what most companies require so you might want to start with a bachelor’s degree in fields such as business administration, finance, supply chain management, or economics. These programs provide a solid foundation in essential concepts.
Consider advanced degrees
Some roles may prefer candidates with a master’s degree or an MBA, particularly those focused on supply chain or procurement. If not possible, you always have the option of enrolling in specialized courses in order to upgrade your professional profile.
Gain experience
Look for internships or entry-level roles in procurement, supply chain management, or logistics. Positions such as purchasing assistant or procurement coordinator can provide valuable hands-on experience. Familiarize yourself with procurement processes, supplier management, and financial principles during these roles. This is also a great opportunity to gauge what industry is the right fit for you.
Earn relevant certifications
Employees want to see you dedicated to keep growing in your career, some of the most relevant certifications for procurement analysts are as follows:
- Certified Purchasing Professional (CPP)
- Certified Supply Chain Professional (CSCP)
- Certified Professional in Supply Chain (CPSM)
Stay Updated
Keep up with the latest developments in procurement, technology, and market trends. Subscribe to relevant publications, blogs, and attend networking events.
Career outlook
Good news for aspiring procurement professionals, according to the U.S. Bureau of Labor Statistics (BLS), job prospects for procurement analysts are expected to increase by 7% from 2023 to 2033. Automation is not expected to represent a threat as no other than procurement analysts professionals can offer the insights companies need. The average annual salary is $82,224.
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