Elevating the Role of Marketing Procurement
June 25, 2013
By Bill Duggan, Group EVP, ANA
ANA has just released a new white paper, “Elevating the Role of Marketing Procurement.” The work focuses on procurement success metrics and is based on a quantitative survey with 113 marketing procurement professionals as well as select qualitative interviews.
The discipline of marketing procurement is evolving. As a result, the types of metrics and measures of success vary depending on the maturity of marketing procurement within an organization. Cost reduction and cost avoidance remain the two top metrics for measuring success. However, with time, greater engagement and impact of marketing procurement drives the need for more advanced ways of assessing positive impact on the organization. Cost reduction for the pure sake of cost reduction is a short-term strategy and is not sustainable.
As a result of the expanded vision of marketing procurement, it must evolve from a tactical role (cost reduction) to a more strategic one. When asked about the “ideal importance” of the metrics, the top ranked metric was improving marketing ROI. Additionally, we see other, more sophisticated metrics emerging: process improvement, innovation, and market share increase. These measurements capture a longer-term perspective of the value delivered by marketing procurement. They are more challenging, but ultimately more meaningful to the organization’s success.
The most mature marketing procurement organizations have progressed on their respective journeys to embrace these strategic metrics. Less mature marketing procurement organizations are encouraged to learn from the experiences and best practices of their more mature peers to expedite their progress.
Full details are available in the new ANA white paper, “Elevating the Role of Marketing Procurement,” at www.ana.net/elevatingprocurement.
You must be logged in to submit a comment.