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Good Marketing Needs Good Procurement Support

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By Tom Denford, Chief Strategy Officer–ID Comms
 
Listen carefully... do you hear the faint sound of victorious agencies cheering? Around the world, Pepsi's media and advertising agencies are probably celebrating after the news that the drinks giant is cutting procurement support for its marketing operations.
 
The news that Pepsi is ditching its procurement department and handing the responsibility back to marketing might sound like good news to agencies but be careful what you wish for.
 
Whilst a small proportion of procurement departments – we'd estimate up to a quarter that we deal with – are still heavily focused on cutting costs from marketing spends, the vast majority (at least 75%) are now more focused on supporting and partnering with marketing to deliver top line growth.

Based on our experience of dealing with some of the world's biggest advertisers, we estimate that more than half of these now have marketing and procurement teams who recognize the need to be aligned and work together to deliver company goals. Yes they still have some tension and different approaches and technical language but the culture of collaboration now largely exists.

(Please download the full PDF of this article at the link to the right.)
Source

"Good Marketing Needs Good Procurement Support." Tom Denford, Chief Strategy Officer at ID Comms. The Internationalist. Number 77, 2016.

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