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21 May 2014

Relations between procurement and marketing "are improving"

Content team

The relationship between procurement and marketing is getting better, with risk mitigation seen as a major benefit, a new survey has revealed.

Research by the Association of National Advertisers (ANA) has revealed 30 per cent of marketers think relations between the two professions have improved, while 62 per cent of procurement professionals said the same.

The ANA claimed these findings suggest the relationship between marketing and procurement, which has been "much maligned" in the past, is finally on the road to improvement.

When asked what is behind this change, respondents pointed to better communication and collaboration, senior management support, alignment of success metrics and visibility of procurement organisation.

Both procurement and marketing professionals agreed that risk mitigation and cost savings are the main benefits the former brings to the relationship.

Some 47 per cent of marketing respondents highlighted risk mitigation as a key advantage, while 37 per cent of procurement respondents said the same.

Bill Duggan, ANA group executive vice president, commented: "The marketing procurement discipline is evolving. This new work confirms that the relationship between marketing and marketing procurement is stronger than ever and provides common-sense suggestions for continued improvement."

However, the organisation's survey revealed there are still some notable differences between the two professions' priorities.

When asked to rate key metrics in their relationship, 90 per cent of procurement respondents cited cost reduction, while risk mitigation (83 per cent) and cost avoidance (77 per cent) were also highlighted as very important.

Marketers pointed to sales/market share increases (80 per cent), marketing return on investment (76 per cent) and improving brand health metrics (70 per cent) as their most important metrics.

Other key findings that emerged from the ANA study include a feeling that senior management support is the single most important factor in supporting the marketing-procurement relationship.

Meanwhile, it is thought marketers should do more to recognise the value provided by procurement and be open to the process improvements it can facilitate.

Content team, Bureau van Dijk

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