The news that one company PepsiCo is getting rid of its Marketing Procurement team to the Marketing press reminded me of the scene in the Wizard of Oz “ding dong the Witch is dead”, all done to much rejoicing. We don’t know the facts, the reason that they are moving the responsibilities back into the Marketing teams. In my 25 years of working in this area the marketing press has never been happy with our role - why should we challenge marketers on their ROI; how dare we run a tender process to select a new supplier and what do you mean we want full transparency of costs.
Magic and Logic is a term coined in a study by CIPS, IPA and ISBA in 2006. Agencies and Marketing enjoy the magic, the creation of the work but you need to balance it with the logic - how & does it get delivered, is it being measured, did it work, are we adhering to corporate governance? When Marketing Procurement works, it is a true agent of change for a client organisation. When we are allowed to be true partners, and prove that we do understand the agency (with over 20k suppliers in the UK that is tough) market, we can deliver on more marketing services for their budgets.
Marketing is an investment to an organisation. Procurement need to adapt and use the right procurement tools and techniques when working in this area. Stakeholder management and relationship building is key. The best Marketing Procurement teams these days are delivering value day in day out yes by looking at the commercial arrangements, but they are pushing for metrics to measure the ROI; they are incentiving the supplier base to deliver over and above and get rewarded to do that; they are reviewing ways of working to drive out internal efficiencies and they are investing in technology systems to support these areas.
I think that the PepsiCo decision is an one off and won’t start a trend. If Procurement are doing all of the above, they have earned their position in an organisation and shall continue to do so.
Tagged by topic: Marketing
by Tina Fegent