What is the level of Sourcing / Procurement's involvement in Media Buying and Planning in your procurement organization?
I have been working in Indirect Sourcing and Supply Chain for the past 8 odd years. I have worked on the other side of table i.e. in Marketing & Sales including as a PM in a Creative Hotshop. Recently I have had an opportunity to work on a global level for a big telecom and I have realized that most marketing procurement teams are not at all involved in the media buying, planning and strategizing cycle. There are ofcourse some competency development challenges, territorial fights over who does what (the eternal fight between marketing and procurement) and time / idea to market issues. But I have previously worked closely with Marketing and procurement - marketing collaboration led to massive savings, major process improvement and significantly reduce idea to market timelines.
I would like know how involved are the marketing procurement professional in the entire media buying lifecycle. It would be great if you could share some best practices as well.
Hi Umair. Marketing Procurement are usually very involved in media buying. Alongside the Advertising category, it is the main area for you to realise value for the marketing clients. You can manage the contract and the commercial terms with the agency. In my experience (25 years in this area), you can also maybe use an external auditor if you want a third party to audit the media prices that the agency is buying on your behalf. If you would like anything more specific or any auditor recommendations please do not hesitate to contact me on at www.tinafegent.com.
Do let us know if you'd like more information on this topic. We consult to the World Federation of Advertisers on this topic, and run media procurement exercises for many leading marketing organisations. www.flock-associates.com.
I think the key element of how involved Procurement is, is answered in your post. "worked closely with Marketing". The more closely the teams work, the more involved they will become. Procurement is still seen as the "black sheep" of departments, they have nothing to contribute but it's all their fault as well :-)
I see it a lot on the Directs side, where Procurement do not even talk to Sales. Makes no sense, and is generally caused by unrealized alignments between goals and targets, IMO.