Cutting Costs without Cutting Corners: Procurement Tips and Tricks
By ANA Staff
Now more than ever, senior leaders are expecting their teams to do more with less. Procurement departments, especially, are being tasked with finding ways to stretch marketing dollars and optimize funds. Below are some examples of how your procurement team can cut costs and simplify processes while still delivering marketing success.
- Marketers have begun to look at their production services differently. Rather than working through advertising agencies, they are beginning to source production internally with great success. Panelists from Coca-Cola and FCA US shared their experiences with direct sourcing production, lessons learned, best practices, and advice for marketers looking to start direct sourcing production.
- Procurement is always looking to make the scoping and negotiations process more efficient without sacrificing fair pricing and savings. Nestlé shared how it developed a “menu pricing” system that can enhance budgeting predictability for marketers, speed up negotiations, and deliver cost savings.
- The K2 Intelligence report on media transparency confirmed that there is confusion between advertisers and agencies about who is in control of advertising dollars. Marshall Garber, professor at Baruch College, shared a financial method for improving the profitability of advertising and strengthening the advertiser’s control over agency operations and the advertising process.
- Over the past two years, Mondelēz has been working on building an automated system for creating and storing all of its scopes of work (SOWs) with its agencies. The brand discussed the details of this journey, including the implementation of the system and the lessons it learned along the way.
- In a climate where marketers are looking to maximize the work they get from their agencies for the money they pay them, and agencies are trying to remain profitable with rebates, a mutually beneficial compensation method won’t come easily. The ANA shared five things you can do right now to improve agency compensation practices at your company.