While procurement is often associated with a process of cost reduction, in actual fact there is a huge opportunity for procurement to help marketing unlock the value of marketing and promote this value throughout the organisation.
The first step is to define the value of marketing by developing a methodology for calculating ROMI (Return On Marketing Investment)
In this presentation I highlight the fact that marketing, along with sales, is the one area that can grow the top line of any business. By working with the relevant senior marketing leads (those who are responsible for or who significantly influence the P&L) to define the value of marketing for the C-suite.
The three areas where procurement should focus for marketing value are:
1. Cost cutting / benchmarking
2. Waste reduction / process optimisation
3. Performance improvement / effectiveness
Cost cutting needs to be undertaken carefully to ensure you do not impact the top line performance of the marketing function. More importantly is the application of cost and resource benchmarking as a way of identifying inefficient areas of the marketing process, especially where marketing engages with external suppliers.
Waste reduction is a combination of process improvement and optimisation to eliminate duplication within the agency roster, the marketing process and the cost of the outputs and outcomes. This includes improvements in costs and speed to market.
Performance Improvement focuses on looking at implementing ways of improving performance from end to end. Budgeting right through to planning, execution and performance.