Companies must maintain a healthy level of profit, and part of that process is establishing strict budget protocols for expenditures. This is the responsibility of the procurement analyst in the purchasing department. He or she will serve as a liaison between his or her company, the finance department, and the company’s current or potential vendors. A procurement analyst contributes to the organization’s overall financial strategy establishing and adhering to procurement guidelines. This process includes evaluating potential and existing vendors, as well as negotiating agreements and pricing to procure merchandise, services, or supplies.
A procurement analyst will frequently complete Requests for Information (RFIs), which are assessment tools used to gather data that accurately gauges the strengths and abilities of prospective vendors while also exposing any weaknesses that could impact the analyst’s financial strategy. He or she may also prepare Requests for Proposal (RFPs), which ask vendors to submit bids for services, merchandise, or supplies in order to help the organization achieve its objectives. After gathering the information from the RFIs and RFPs, he or she will analyze the information to make vendor decisions, usually settling on one or more vendors for contract.
The procurement analyst will negotiate the terms of the agreement with the chosen vendors in the next phase of the process. This procedure is usually focused on documenting the clear expectations that both parties must meet as well as determining final pricing structures. In addition, the procurement analyst is often in charge of drafting and renewing all contracts between his or her company and its vendors. All guidelines and stipulations articulated in the agreement must be specified in final contracts, including, but not limited to, the goods and services purchased, contract length, expected delivery times, quality and quantity expectations, and clear payment terms.
It’s critical to establish a working relationship with the vendor, and once that’s done, the procurement analyst can use his or her data analysis skills to compare vendor terms and performance to market data. Analyzing current market trends and forecasting future performance of goods and services on the open market will provide useful information for recommending purchasing strategies that are in line with the company’s financial objectives. As a result, a procurement analyst will devote a significant amount of time to converting raw data into actionable information.