Pernod Ricard's purchasers get clarity on marketing spend

18 January 2012

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18 January 2012 | Angeline Albert

Buyers at Pernod Ricard have reduced supplier numbers and gained visibility of their marketing expenditure after putting a spend management system in place.

The maker of wine and spirit brands, including Jacob's Creek, Chivas Regal and Absolut Vodka, is ensuring its staff use spend management platform eMarket to order from a preferred list of suppliers for point of sale (POS) items such as branded t-shirts, glasses and other promotional gifts.

The use of the ProProcure software has led to staff across the group being steered to a pre‐approved list of branded promotional materials which is now supplied by just 20 per cent of Pernod Ricard’s original POS supply base. It has also helped with product quality and brand consistency – with, for example, the same glasses used for the same brand in each of the countries the company operates in.     

Suppliers are also challenged to raise their game as a result of a module that allows staff to rate the supply base and the items they have ordered.      

The company said the changes have resulted in savings but would not confirm how much.

Pernod Ricard’s POS category leader Nicolas Meauze, who is based in Paris, said: “For 2012, I will focus on ensuring all users adopt the tool. The main benefits are the visibility of spend and the integrity of the brand that it ensures. When you place an order to a preferred supplier you also benefit from lower prices because more of the group’s users are ordering this supplier’s items.”

The system also helps the company reduce its carbon footprint by enabling those ordering POS items to order from the group’s warehouses or a preferred supplier, depending on which is closer.        


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