Marketing Procurement – Reacting to Market Forces

Navigating the data-driven world was one of the umbrella themes at ProcureCon Marketing last month. Within that theme we heard from Gilles Bérouard, Global CEO at Hercules Transforming Production Ltd. He is known for his visionary thoughts on how corporations need to turn around their marketing efforts in the next 10 years. And as the recent Deloitte report pointed out “The traditional procurement operating model probably has to change. This has been driven by a lack of talent and an increase in digital innovation.”

So he asked: How will we react to market forces to continue to create value and foster innovation?

Projecting 10 years ahead is not easy. What we said 10 years ago might well not seem right now – if we could even remember what we said then. But he shared what a handful of CEOs have said about the future of marketing procurement:

  • “The key for the agency and client moving forward will be how to attract and retain key digital talent.”
  • “In an era of transparency, you can have innovation without branding, but you will not have branding without innovation.”
  • “We have to become more digitized and based on data, but ideas and passion will last forever.”
  • “The future core account team will be run by multi-specialists drawn from within our network.”

These of course ring true – but what he has learnt, is that Value for Money is and will continue to be critical. All multinationals today are working on the same challenges and these will define the trends of tomorrow, as we all face the same issues: globalisation – risk – innovation – information – lack of internal engagement – misaligned KPIs – collaboration – need for agility.

The search for growth and cost efficiency is ongoing and businesses are rethinking their strategies, the way they are working, their business models, changing revenue streams - but is all of this enough?  If you had to focus on just a few future critical success factors to drive value creation he suggests they would be globalisation, technology and price.

With globalisation, some have forgotten the importance of ‘local’ - we need to move towards high local relevance (communicating locally), start developing expertise in local, emerging market sourcing and developing economies. With technology we need to react to trends faster (agility and flexibility), respond to rapidly changing sources, suppliers, materials and logistics.

So – how do we sensibly organise ourselves for better results? Bérouard wants to transform the marketing organisation; he sees organisational models for instance that combine global and regional hubs with local implants in strategic countries wherever and whenever needed. He presented a range of ideas to increase the impact of local communication:

  • Transcreating - not translating
  • In-market copywriters - leveraging local insights, cultures and trends
  • Native project managers - collaborating with local clients in their language
  • Multi country productions - anticipating requirements to better answer local specifics
  • Brand Help Desk: ensuring brand guardianship to support local clients
  • CSS: Tracking every projects with a personalised CSS to improve performance

And in terms of what procurement can do to drive cost efficiency, agility & flexibility:

  • Near-shore rates and flexibility - combining higher proximity and lower cost rate
  • New remuneration models - defining leadership fee and price per deliverable
  • Variable compensation with incentives indexed on pre-defined KPIs
  • Collaborative tools and digital asset management  - accessing 24/7 proprietary online solutions from any worldwide location

What is really important to remember is that we are moving from a model where you had to be global or local, specialist or generalist, volume or value - what is needed now, he says, is to combine and look to be both. To see the full presentation go the ProcureCon website

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