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PROCUREMENT STRATEGY

Procurement is a strategic partnership – not a box-ticking exercise

By our News Team | 2022

Actively involving procurement in key processes makes for better quality marketing-sourcing decisions, says CMO Council.

Marketing should aim to leverage procurement’s expertise to select the right agencies and vendors that will provide value to the brand and align media buying and other activities to the larger business strategy.

This is according to the Chief Marketing Officer Council (CMO Council), which has found that, currently, only 26% of marketing leaders actively partner with procurement in the identification, selection and negotiation of marketing vendors.

Procurement Strategy

Photo by RF Studio at Pexels

The report, produced in partnership with professional services firm KPMG, covers critical capabilities of marketing sourcing and how CMOs can enlist procurement to help marketing teams make better decisions. The report found that CMOs who more actively involve procurement in marketing sourcing enjoy a more positive impact on the overall maturity and quality of marketing-sourcing decisions.

“Think of procurement as a strategic partnership that spans planning, vendor analysis, selection and management, rather than a box marketers need to check in contract negotiations,” said Donovan Neale-May, Executive Director of the CMO Council. “A rudimentary level of involvement will likely not generate any significant value for marketing.” 

According to the report, CMOs should involve procurement:

  • To develop a global and local marketing sourcing strategy and establish sourcing processes.
  • To create a framework for identification and selection criteria, performance metrics, etc.
  • To optimise MarTech planning, vendor evaluations and contracting for better integration and alignment with the overall digital transformation strategy.
  • To review the existing agency landscape and contracts, and to consolidate rates and spend.

“Considering the uncertainties in the current socioeconomic environment, marketers are facing increased pressures to elevate performance and meet short- and long-term goals while facing added pressure on budgets and spending,” said Jason Galloway, Customer Advisory Leader and Marketing Consulting Practice Lead at KPMG LLP. 

“Marketers can generate more value through a closer, more strategic partnership with procurement, leading to more robust marketing sourcing, management capabilities, and measures to assess performance. 

“In fact, the new CMO Council report shows that the majority of marketers that have an effective working relationship with procurement have greater maturity in digital and could potentially unlock revenue growth through MarTech.”

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    Dr Kin Kariisa

    Group CEO - Next Media

    Dr. Kin Kariisa is an extraordinary force at the helm of Next Media Services, a conglomerate encompassing NBS TV, Nile Post, Sanyuka TV, Next Radio, Salam TV, Next Communication, Next Productions, and an array of other influential enterprises. His dynamic role as Chief Executive Officer exemplifies his unwavering commitment to shaping media, business, and community landscapes.
    With an esteemed academic journey, Dr. Kariisa’s accolades include an Honorary PhD in exemplary community service from the United Graduate College inTexas, an MBA from United States International University in Nairobi, Kenya, a Master’s degree in Computer Engineering from Huazong University in China, and a Bachelor’s degree in Statistics from Makerere University.
    Dr. Kariisa pursued PhD research in Computer Security and Identity Management at Security of Systems Group, Radboud University in Nijmegen, Netherlands. As a dynamic educator, he has shared his expertise as a lecturer of e-Government and Information Security at both Makerere University and Radboud University.

    Dr Kin did his PhD research in Computer Security and Identity Management at Security of Systems Group, Radbond University in Nigmegen, Netherlands. He previously served as a lecturer of e-Government and Information Security at Makerere University in Kampala, Uganda and Radbond University in Netherlands.

    Dr Kin did his postgraduate courses in Strategic Business Management, Strategic Leadership Communication and Strategies for Leading Successful Change Initiatives at Harvard University, Boston USA.

    • Other current and previous roles played by Dr Kin Kariisa:
    • Lecturer of e-Government and Information Security to graduate students at Makerere University, Kampala and Radbond University in the Netherlands
    • Director of Eco Bank Uganda Limited, one of the largest banks in Africa
    • Chairman of the National Association of Broadcasters, an umbrella industry association for all Television, Radio and online broadcasters in Uganda.
    • Chairman of Board of Directors of Nile Hotel International, that owns the leading hotel in Uganda, Kampala Serena Hotel.
    • Chairman of Board of Directors of Soliton Telmec Uganda, the leading telecom company in Optic fibre business managing over 80% of optic fibre in Uganda.