Hunter Campbell’s Supply Chain Excellence Series profiles roles within the Supply Chain job family including jobs in demand, salaries, and employment prospects.
In this article, the role of Procurement Analyst is in the spotlight.
Purpose of the Role
A Procurement Analyst typically exists in larger procurement teams or in more mature procurement functions that have the capacity and structure to support a specialised role. In smaller or less developed procurement teams, the role of Procurement Analyst will typically be absorbed or distributed among other roles such as Procurement Specialist or Category Manager.
A Procurement Analyst usually reports to a Procurement Manager/Head of Procurement but supports Procurement Specialists or Procurement Category Managers. In larger teams Procurement Analyst tend to be assigned to specific categories (for example raw materials, packaging, ICT, corporate), though usually teams have one Procurement Analyst providing support across the whole procurement function and multiple categories.
A Procurement Analyst is responsible for understanding the requirements of the business and to carry out research and evaluation of suppliers, products, and services to support the Procurement Team in effective decision-making that enables the business to achieve optimal supply of product and services at minimum cost to the business.
The main role of a Procurement Analyst is to provide data and analysis on current suppliers, potential suppliers and future market trends to support decision making across the procurement team.
Increasingly Procurement Analysts are required to provide data and research on suppliers, analysing their ethical and sustainability programs to determine their level of transparency and adherence to global standards and national legislative requirements.
The responsibilities of a Procurement Analyst vary but are likely to include:
- Data Analysis
- Supplier Evaluation
- Cost Analysis
- Market Research
- Contract management
- Risk management
- Reporting and dashboards
- Process improvement
- Compliance
- Supplier Relationship Management
Qualifications
Typically, Procurement Analysts possess a degree-level qualification in subjects such as supply chain or procurement, engineering, or a mathematical/statistical degree.
It is a role that does not have an established traditional career path. Due to the nature of the role individuals with sound critical thinking and data skills are essential. Candidates can progress from roes such as purchasing or an analyst in other areas of upply chain such as Inventory Analyst, Master Data Coordinator or from an analyst role in another area of the business requiring the same skills such as sales or finance. Graduates looking to build their career in procurement are often blooded into procurement through an initial role as Procurement Analyst, and expect to ultimately progress through to Procurement Specialist, Category Manager or Manager in the future.
Although not essential those studying, or holding qualifications/certification or membership in either NZPICS or CIPS are highly regarded. Particularly for those looking to further progress their career in procurement.
Key Skills Required
While a Procurement Analyst does not manage the full 360 procurement process, they do require similar skills to a Procurement Specialist or Procurement Category Manager. As an Analyst they are not making the final decision, agreeing terms, negotiating or other aspects of procurement. However, they are responsible for carrying out important research, evaluation and managing relationships.
The following key skills are essential to ensure a Procurement Analyst is well equipped to be successful in their role:
Communication and relationship management skills to establish and maintain relationships with vendors and third-party suppliers as well as internal stakeholders
Critical thinking – the ability to use data and research to make effective procurement recommendations and decisions. A solutions-focused approach to be able to deliver effective solutions to the business
Analytical and numerical capability with the ability to use and manage data and to provide insights, analysis and recommendations
Career Prospects
Procurement Analysts have impressive experience covering data analysis, relationship management, research, cost management, risk management and contributing to effective decision-making.
A Procurement Analyst is a good career option in itself and many procurement practitioners choose to remain in the position long-term.
Natural career paths for Procurement Analysts exist both in and outside of Procurement. Individuals who perform well are often earmarked for a move into a Procurement Specialist or Category Manager role to continue their career and progress down the procurement route.
Outside of procurement, realistic options exist to move into analytical, project management or commercial management roles in other areas such as Finance, Sales or depending on the industry into specific roles that require rigorous data management, numerical skills and the ability to deliver meaningful insights to drive sound commercial decision-making.
Recruitment Forecast
Procurement Analysts have impressive experience covering data analysis, relationship management, research, cost management, risk management and contributing to effective decision-making.
A Procurement Analyst is a good career option in itself and many procurement practitioners choose to remain in the position long-term.
Natural career paths for Procurement Analysts exist both in and outside of Procurement. Individuals who perform well are often earmarked for a move into a Procurement Specialist or Category Manager role to continue their career and progress down the procurement route.
Outside of procurement, realistic options exist to move into analytical, project management or commercial management roles in other areas such as Finance, Sales or depending on the industry into specific roles that require rigorous data management, numerical skills and the ability to deliver meaningful insights to drive sound commercial decision-making.
Salary guide
This information is anecdotal and based on roles Hunter Campbell is currently recruiting or has previously recruited and relate to base salaries. They do not include any additional bonuses or benefits.
Junior – $70000 – $80000
Intermediate- $80000 – $100000
Senior – $100000 – $120000
Junior analysts are typically university graduates and or an analyst moving into their first procurement-specific role. Their responsibilities would tend to focus more on research, data management and reporting, rather than decision-making and having more commercial responsibility – so much more of a support role.
Intermediate Procurement Analysts are more experienced offering more capability in providing advice, guidance and have an improved understanding of supplier management, relationship management and the use of data and analysis.
Senior Procurement Analysts are more involved in commercial decision-making, advanced data analysis and may manage a small team. They are likely to have more responsibilities and decision-making experience.
If you would like to find out more about the role of Procurement Analyst, please contact Senior Consultant Wayne Fry. Wayne specialises in the recruitment of Supply Chain, Procurement & Operations roles. For more news and views visit our website by clicking here, see what opportunities we have available here or follow us on LinkedIn.
