Transcript How to Sell the Benefits of Marketing Procurement Internally

How to Sell the
Benefits of Marketing
Procurement
Internally
Marketing Procurement is Different
• Marketing spend is an investment.
• Marketing services are unique.
• Marketing decisions are frequently real-time.
• Marketing can be unpredictable.
• Marketing is not a commodity.
• Marketing people speak a different language.
10 Ways Marketing Procurement Delivers Value
Strategic Sourcing
• Begins by listening carefully to understand business requirements
• Meets with functional leaders across marketing to clarify annual business
objectives and identifies opportunities for collaboration
• Establishes key sourcing initiatives and gains agreement.
– Assembles cross-functional team
– Reviews current state, identifies pros and cons
– Develops specific requirements and timelines
– Ensures there is a shared picture of success
– Initiates sourcing project
– Negotiates and analyzes contract
– Stewards results
Cost Savings
• Cost reduction: The difference between current year actual costs
versus costs of a prior period that results from a specific decision or
action by procurement related to a business improvement initiative.
Cost reduction savings will measure the absolute savings resulting
from these initiatives.
• Cost avoidance: The difference between current year actual expense
and the expense that would have been incurred from a specific
decision or action by procurement related to a business improvement
initiative. Getting “more for less.”
Risk Mitigation
• Contract execution/management
– Develops consistent contract templates
– Protects company from patent infringement and defines ownership of deliverables, IP
rights, and so forth
– Establishes shared database for supplier contracts
– Optimizes reporting routines to support the business planning and supplier
management processes
• Supplier segmentation
– Segments the supply base
– Proactively develops contingency plans
Budget Management
• Consults with and manages stakeholder budgets, stretching
marketing dollars
• Avoids scope creep, evaluates agency staff mix, and compares
current fees to baseline (year-over-year)
Industry Trends & Benchmarking
• Industry trends
– Understands competitive landscape and emerging trends and technologies to capture
market opportunities and spur innovation
– Stays informed to make better decisions, spot trends and opportunities, and create a
framework to respond to a constantly changing world
– Builds enterprise subject-matter expertise
• Benchmarking
– Builds awareness of best practices and defines opportunities for improvement
– Gains an independent perspective about your company’s performance against the
competition
– Helps prioritize opportunities and set performance expectations
– Obtains data that sparks discussion on new ideas and practices
– Compares one agency to another; aids in negotiations
Supplier Management
• Establishes appropriate metrics as part of contracting process
• Monitors/improves agency performance based on a holistic agency
relationship management process
• Determines how to link agency results to rewards through mid-year
and year-end agency performance reviews:
Innovation
• Actively seeks cutting-edge industry information to identify new supplier
entrants who offer innovative products, services, and/or processes
• Leverages agency partners and suppliers to share their best thinking and
ideas through innovation summits
• Researches and applies best practices and case studies to improve
organizational efficiency and effectiveness
Spend Visibility/Transparency
• Identifies cost drivers in collaboration with stakeholders
• Participates in benchmarking studies and leverages information from
prominent industry groups/forums related to cost information (e.g.,
ANA, 4A’s)
• For services, requires agency to provide hours by role for the team
delivering the scope
Process Improvements
• Works collaboratively with stakeholders and suppliers to identify process pain
points
• Initiates continuous process improvement focused on increasing efficiency
and streamlining business processes
• Focuses effort on improvements that contribute to company profitability and
ROI
• Creates a win/win for both the parent and supplier organizations
• Standardizes processes which may drive value without changing suppliers
• Elevates the briefing process so the agency gets it right the first time
Automated Tools and Leveraging Technologies
• Business intelligence (e.g., spend analytics, fees, complexity)
• Standardized, consistent, automated briefing process
• Automated agency evaluations, reporting, etc.
• Central repository of historical benchmarks and total hours by agency
role
• Warehouse for creative files, which avoids duplication
Thank you!
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