What Does a Sourcing Analyst Do?
A sourcing analyst is a professional who is responsible for collecting and analyzing data related to products and services a company uses to operate. For example, in a manufacturing company, a sourcing analyst might price materials, evaluate the efficiency of vendors and figure out how these statistics impact specific aspects of a company's processes. In most cases, sourcing analysts are asked to be familiar with the idea of a supply chain, which describes all of the services that are necessary to bring a product or service to clients. Most sourcing analysts need at least a 4-year college degree, preferably in a field such as engineering, supply chain management or finance.
A sourcing analyst examines data regarding cost and availability of materials and services needed to complete projects. For example, an analyst who works for a manufacturing company dependent on commodities such as copper might track costs and availability of this metal then provide finance officials information and analysis pertaining to budgeting and time frames. Another part of developing an outlook is determining risk. Analysts figure out the probability that they will lose money or assets by using certain sources and determine estimates for amounts of potential loss.
It's important that a sourcing analyst stays up to date with issues in his or her particular industry and with supply chain management issues in general. For example, professionals who work with sourcing data in automotive manufacturing might follow steel, iron and chrome markets. Sourcing analysts who work for large, multinational corporations might be concerned with tariff laws and exchange rates, as well as with new strategies developed by supply chain specialists. Organizations such as the Council of Supply Chain Management Professionals set up conferences and seminars.
Aside from managing and analyzing data, sourcing analysts often must make recommendations. In order to do this, analysts must have a working understanding of a company's strategies regarding management of the supply chain, financial goals, and plans for growth and structural change. For instance, an analyst for a food services provider who wants to use an employment agency for catering work might analyze different agencies' payroll plans, fees and levels of quality to make recommendations to high-level managers.
Because knowledge of a company's overall operation is so important to a sourcing analyst, he or she might regularly meet with managers from different departments to discuss goals and develop plans to meet the goals. An analyst for a large retailer might work with warehouse managers to discuss inventory levels, then communicate with vendors to collect data that can help him or her learn where potential setbacks are located. Verbal and negotiation skills are essential for sourcing analysts.
David Nelson has written about business, management and career guidance for companies such as Conjecture Corporation and Valley Direct Media and has worked in management and as a college level writing tutor. He has a Masters degree in writing from the New School Writing Program in New York City.