How Does Procurement Drive Innovation?
March 15, 2013
By Bill Duggan, Group EVP, ANA
We’ll define innovation as “identifying emerging trends and bringing new ideas to the organization.” So how does procurement drive innovation?
At the ANA Advertising Financial Management Conference we will share results of our “2013 Procurement Value Metrics Survey” which identifies the metrics used to measure the success / contribution of the marketing procurement organization. Innovation is one of the metrics we looked at.
Forty-four precent of respondents noted that innovation is indeed a metric used at their respective companies to measure the success / contribution of the marketing procurement organization. And the more mature the marketing procurement department, the more likely that innovation is a success metric.
What are some specific examples of procurement driving innovation? We’ve heard lots in the area of production including creating rosters for preferred suppliers such as production companies, editing, trafficking, as well as consideration for shooting in states that offer commercial production incentives. And we’ve heard great examples of procurement driving innovation by centralizing digital asset management and scope of work templates.
Cost reduction and cost avoidance will always be part of procurement’s role. But procurement must not have tunnel vision and only be interested in cost reduction / avoidance. Rather, procurement should think more strategically and embrace the role of driving innovation to improve marketing ROI as that is the path to long-term success for marketing procurement.
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