Procurement attacked by marketers

19 November 2009

19 November 2009 | Jake Kanter

Marketers have launched a scathing attack on the procurement profession, according to a report in Advertising Age (Ad Age).

Speaking at the American Advertising Federation's annual Advertising Hall of Achievement this week, a number of marketing executives were critical of buyers' focus on costs.

Tara Comonte, chief financial and operations officer of marketing agency Mediabrands, reportedly said: "Procurement wants to pay less than enough. And it will be self-destruction."

Frank Cooper, PepsiCo's chief marketing officer for sparkling beverages, added: "With global procurement leading creative and media discussions, disaster is surely on the way."

Meanwhile, speaking at another event - the Association of National Advertisers conference last week - Ad Age editor Jonah Bloom said purchasing's increasing influence on marketing spend and "obsession" with securing return on investment cannot be ignored.

He added that this year there were an "awful lot of agencies being forced to work at fairly abysmal margins that were bound to make the work and thinking suffer".

The opinion contradicts the findings of two studies published in Europe this year. Last month supply chain management consultancy BrainNet found effective purchasing can ease pressure on marketing budgets, while a separate survey in July showed many marketers welcome procurement's involvement in creative spend.


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