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5 July 2012 | Kamalpreet Badasha
The World Federation of Advertisers (WFA) is launching a free tool to help companies assess their marketing procurement.
It aims to identify weaknesses in purchasing, and illustrate the benefits of collaboration between marketing teams and agency partners. The tool, which is offered in conjunction with consultancy SPIRE, allows companies to benchmark their buying against global brands by providing a measurement of their marketing procurement maturity.
A study by the WFA into 45 firms with a total marketing spend of about $60 billion (£38.5 billion) found that biggest global brands have integrated marketing sourcing functions into the management of marketing activities. And the top performing brands have centralised spend management. Money management and working with the best suppliers led to the greatest improvement in performance between 2010 and 2012.
WFA research from 2010 found effective marketing procurement has four key measures of performance. This research has also been integrated into the tool.
Steve Lightfoot, global marketing procurement senior manager at the WFA, said: “Our aim is to help all sourcing teams move along a maturity path to ensure that this function continues to deliver value to the business that includes, but goes beyond, cost targets. We aim to model this development over time and offer a global benchmark for marketing procurement excellence.”
The free tool can be accessed by completing an online survey which will enable companies to identify the exact role of their procurement department in relation to marketing teams and agency partners.