Procurement eases pressure on marketing budgets

30 September 2009

01 October 2009 | Allie Anderson

Effective purchasing can help marketing departments operate more efficiently and generate savings of up to 18 per cent, a study has found.

The report, conducted by supply chain management consultancy BrainNet, said by collaborating with procurement, marketing teams could significantly relieve the pressure on their budgets.

Executives from more than 50 advertising and marketing companies across Germany were asked their views about how procurement can bring benefits to marketing during a period when budgets were being slashed.

Those who actively collaborate with purchasers reported an average increased budget efficiency of 10 per cent, rising to 18 per cent in the best cases. The study also found that "the more skilled the purchasing department is in marketing issues, the greater the boost to efficiency achieved".

The BrainNet findings suggest expertise in negotiating is the key skill marketing can draw from working with purchasers.

They follow a separate study of 250 marketing decision-makers by consultancy Rainmaker, which found that nearly half thought procurement processes ensured the best strategic and creative responses from marketing suppliers (News, 6 August 2009).

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