Is there really a tradeoff present between valuing cost avoidance and performance? In a survey of procurement executives outlined in Ad Age's recent article, the depth of the issue can be seen from their conflicted rankings of “the most important things” to measure while considering procurement goals. In the survey, these executives judged cost reduction and avoidance as most important, but also affirmed that supplier performance and process improvements are crucial.

Historically, the longer a company has been involved in marketing procurement, the more complex their metrics to evaluate marketing procurement are. In other words, firms who have been sourcing their marketing for less time will have less precise metric goals than more mature marketing procurement groups.

A strategic sourcing consultant for Aflac, Terri Burns, states that these results show the development of marketing procurement within organizations today. She points out the importance of a more strategic role than simple cost-cutting. One notable innovation in this area was by Sopan Shah, the global leader of advertising and marketing procurement at Nestle, as he formed a deal between Juicy Juice and a startup company to allow people to tweet a unique hashtag directly from their ads. Following this, he assisted in the creation of an augmented reality platform for Nestle brands, without any cost to the company.

With these conflicting goals, marketing procurement groups are looking beyond their in-house resources for support. If your marketing procurement is in need of assistance, check out Source One’s impressive sourcing resources for marketing.

Courtesy of: creativiaty.blogspot.com
 
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Heather Grossmuller

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