The Secret to Smart Spending
Historically, marketers have avoided procurement. However, agility in 2022 necessitates cross-functional alignment across all departments. Marketing is now a team sport that involves everyone from sales to IT to, yes, procurement, in order to be successful.
But getting on your procurement team’s good side may just be your secret weapon to spending smarter and making better decisions for your organization.
CMO Council recently partnered with KPMG for a study of over 200 marketers in B2B and B2C industries to analyze the cause and effect of relationships between marketing and procurement teams. And the findings were astounding.
CMOs who make the effort to actively involve procurement in marketing decisions reported the relationship having a statistically significant positive impact on the overall maturity and quality of marketing sourcing decisions. One anonymous marketer reported saving 25-30% in hard dollars due to this collaboration, which was then rolled back in to the media budget.
With marketing budgets under fire for the last few years, any way we can get leaner and more strategic is a leg up. Procurement can help review your existing agency landscape, contracts and rates, while consolidating those expenditures to determine what is actually necessary and beneficial for your team.
Effective collaboration across all departments leads to more streamlined processes — we know that. And procurement is no exception. Our study found that 83% of marketing leaders who actively involve procurement have standardized document management processes, which is huge for keeping budgets lean, mean and effective.
Paul Suchman, CMO of Audacy, said it best when asked about the topic: “At the end of the day, we’re on one team, playing to win.”