WFA advocates for value based marketing procurement in new guide
The world Federation of Advertisers, WFA, has unveiled the first of its kind guide on how to to convert the actions and perception of marketing procurement.
Derived from two years of intensive research and co-authored by procurement leaders at some of the world’s biggest companies, Project Spring: Revolutionising the perception and contribution of marketing procurement, has been hailed as the most detailed guide yet to making the shift from a simple savings approach to value.
The publication is timely with marketing departments under pressure to reduce spend as a result of Covid-19 driven budget cuts. Written by the 12 founder members of the WFA’s Global Sourcing Board, many of whom work for some of the world’s biggest advertisers, the goal is to ensure that marketing procurement teams have the tools to take a value-based approach rather than revert to a race to the bottom on price.
The report was triggered by WFA research in 2018, which found that although 87 per cent could not imagine a world without marketing procurement, 92 per cent of respondents feel that the way marketing procurement is perceived by their organisation could be improved.
Since then the Global Sourcing Board has been working to identify solutions and practical steps that marketing procurement teams can take to improve internal perceptions and transform their role from primarily driving savings or negotiating contracts into a more strategic role.
Laura Forcetti, Marketing Sourcing Global Lead, WFA: “The future of sourcing is in adding value beyond savings. It should be not just a business partner that shares objectives with colleagues but also a source for growth within the organisations. It can only be these things if there is a shift from a primarily savings outlook to a value creation approach. Project Spring brings together the best thinking on marketing procurement and should be an essential handbook for all practitioners, whatever the size of their organisation.”
Ever since marketing procurement emerged as a discrete discipline more than 25 years ago, there has been a suspicion that the traditional procurement approach cannot be applied to marketing agencies where outputs are not repeatable and the impacts are hard to quantify and thus value.
Project Spring, launched by the WFA in 2018, was designed to help the industry solve these challenges, identifying more meaningful and aligned KPIs and approaches and outlining how the profession can provide strategic value to their marketing counterparts as well as the finance department for the benefit of the whole company.
Luis Di Como, Unilever EVP Global Media: “Unlocking growth that is responsible, profitable, consistent, and competitive, must become the number one metric going forward to drive the right behaviors across our marketing ecosystem and have all aligned behind a common goal. It’s imperative we focus jointly on the purpose of what marketing is meant to drive, and jointly unlock value and growth. This should not just be the goal but also the mission and purpose of marketing procurement teams of the future.”
Ekaterina Agafonova, Global Strategic Sourcing Director Commerce, Heineken: “Commercial procurement is increasingly a vital connector between the fast-evolving points of the marketing ecosystem. We have come a long way and are ready to offer expertise, knowledge, and innovative solutions to our stakeholders. We also see our role as creating trusted partnerships and keeping the relationships between our partners internally and externally balanced and prosperous.”
The new guide can be accessed here