How To Become An Allocation Analyst: What It Is and Career Path

What is an allocation analyst and how to become one

Updated January 8, 2025

3 min read

The primary job of an allocation analyst is to provide analytical services to optimize the supply chain operations of a company. He/She allocates merchandise to stores at the appropriate levels within the right time frame. He/She manages product inventory levels by evaluating factors like store volume groups, regional differences, and product category differences. This is to set store inventory targets that achieve optimum store sales and gross margin. Also, he/she creates and executes an allocation strategy that supports the delivery of the team's financial goals.

To become an allocation analyst, you need either a bachelor's or an associate's degree in business, economics, or a related field. Candidates must have at least two years of experience in a similar role. The skillset includes analytical, organization, and communication skills. You must be proficient in Microsoft Office. Allocation analysts make an average salary of $82,067 annually or $39.46 per hour. This ranges from $59,000 to $113,000.

ScoreAllocation AnalystUS Average

Salary

5.1

Avg. Salary $65,773

Avg. Salary $59,228

Stability level

4.9

Growth rate 19%

Growth rate 0.3%

Diversity

3.0

Race

American Indian and Alaska Native 0.13%

Asian 11.10%

Black or African American 5.30%

Hispanic or Latino 12.67%

Unknown 5.03%

White 65.76%

Gender

female 70.65%

male 29.35%

Age - 34

Race

American Indian and Alaska Native 3.00%

Asian 7.00%

Black or African American 14.00%

Hispanic or Latino 19.00%

White 57.00%

Gender

female 47.00%

male 53.00%

Age - 34

Stress level

4.9

Stress level is manageable

7.1 - high

Complexity level

8.2

Complexity level is challenging

7 - challenging

Work life balance

4.6

Work life balance is fair

6.4 - fair

Key steps to become an allocation analyst

Explore allocation analyst education requirements

Most common allocation analyst degrees

Bachelor's

81.0 %

Associate

10.0 %

Master's

4.8 %

Start to develop specific allocation analyst skills

Skills	Percentages
Allocation Strategies	11.46%
Purchase Orders	8.16%
Logistics	6.66%
Distribution Centers	4.27%
Apparel	4.21%

Complete relevant allocation analyst training and internships

Accountants spend an average of 1-3 months on post-employment, on-the-job training. New allocation analysts learn the skills and techniques required for their job and employer during this time. The chart below shows how long it takes to gain competency as an allocation analyst based on U.S. Bureau of Labor Statistics data and data from real allocation analyst resumes.

Research allocation analyst duties and responsibilities

Manage sales forecast and inventory at store level using E3.
Analyze and forecast sales, manage inventory levels and determine distribution strategy to all Marshalls stores.
Establish and maintain significant cross-functional relationships with buying team, distribution centers, logistics, store operations and other departments.
Utilize E3 slim to project forecast, sales, and promotional events.

Prepare your allocation analyst resume

When your background is strong enough, you can start writing your allocation analyst resume.

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