Procurement lacks control over marketing

21 January 2008
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21 January 2008 | Paul Snell

Most purchasing departments do not have control over their marketing supply chain, according to a report.

A survey of buyers and marketers, carried out by the Aberdeen Group and print management firm HH Associates, found only 20 per cent of procurement functions have control over marketing spend.

The study, which surveyed 270 firms worldwide, also found only half of firms have data on this spend, and only 30 per cent of companies have a service level agreement with their marketing agencies. More than 70 per cent of firms do not measure the performance of their marketing suppliers.

The process of "de-coupling", where the marketing supply chain is broken up, was found to be increasingly popular among the best firms to create cost-savings.

Tony Massey, group sales and marketing director at HH Associates, said in a statement: "Smart organisations are successfully paring back the layers in previously obscured marketing supply chains so that spend on brand development is maximised and is as efficient and transparent as possible. It is vital that procurement departments have a clear visibility of this, as well as an appreciation of the brand and its relation to business value."

Last year buyers were told to lend their expertise to improve processes if they wanted to make the marketing function more efficient (News, 4 October 2007).



SMjan2008

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