Build Effective Working Relations
Going forward, marketing need to view procurement not solely as tactical, but as a strategic partner. 2014 reports suggest that the much maligned relationship between marketing and procurement is now seeing improvements. While there are still certainly some notable differences in priorities, the findings suggest much improved levels of trust and relations, with both procurement and marketing professionals agreeing that risk mitigation and cost savings are the main benefits that the former brings to the relationship.
Reduce List of Preferred Suppliers
Continued consolidation of suppliers will be a priority for marketing procurement professionals in 2015. Preferred supplier lists are a useful tool for companies looking to reduce service costs. Leveraging strategic suppliers who are able to deliver not just one service but also added-value services, will become increasingly attractive propositions for procurement as rationalisation of suppliers is a key element of cost optimisation. Cost, speed to market, geography and capabilities will be the high priority prerequisites for suppliers making the preferred supplier list, which will continue to shrink in size as supply-chains globalize and suppliers become increasingly dynamic. Procurement kpis
Supply Chain & Sustainability
Supply chain, procurement and sustainability will come together in 2015. With emphasis on managing social, ethical and environmental issues, embedding sustainability into procurement processes, implement responsible procurement processes and working with channel partners to manage the final stages will become firmly embodied into procurement practice.
So increasingly important are these factors that now an event: the Responsible Procurement & Supplier Engagement Conference is spearheading thought leadership in the area. As a result, marketing procurement professionals will be expecting more from their preferred suppliers. Low prices are no longer enough, suppliers will be expected to display excellent in-house sustainability initiatives that reinforce procurement’s decisions and justify responsible procurement practice. Sustainability does not need to be seen as only a requirement. Done right, it can become a key facet of an organisation’s proposition.
There is an increasing importance for procurement professionals to increase involvement from an early stage. Marketing procurement professionals need to be involved right from the idea development stage through to the final stage of delivery to ensure suitability. This ties in with the aforementioned relationship-building with marketing, but on top of this, procurement will be looking to build relationships with senior stakeholder and product development departments.