According to Bruce Murray at Expense Reduction Analysts, top companies are ‘wasting millions’ in marketing and print procurement.
- Top companies wasting £600 million per annum on inefficient marketing procurement
- The vast majority (88%) label current marketing procurement practices ineffective
- Four fifth (79%) claim marketing procurement could be more efficient
In a soon to be published white paper by a leading marketing services production company, Europe‘s top 500 businesses were surveyed and found that they could be wasting up to a combined £600 million (€716m) per annum when purchasing marketing and printed products and services.
The study, based on the responses from 200 procurement professionals from across Europe‘s 500 largest businesses demonstrates that driving purchasing efficiencies is vital in an uncertain economic environment and to cope with shrinking marketing budgets.
Of the procurement professionals surveyed, two thirds (65%) agreed that traditional procurement categories were yielding fewer savings than ever before. The vast majority (88%) said their existing marketing procurement practices were becoming less effective. However, only a fifth (21%) claim their organisations were already as lean as possible.
Many large businesses have been furiously driving out inefficiencies in cor categories since the start of the recession and continue to do so. However, as these areas have been well visited over recent years, procurement professionals are having to seek out savings in new areas previously unexplored.
Finance departments have their sights set on marketing procurement and should now be working together with the marketing teams to identify potential savings that could help marketing budgets go further and create efficiencient for the organisation as a whole.
But where do you start? The ability to analyse measurable spend within a marketing budget can be difficult to identify and benchmark. Worse yet, how do you compare on a like for like basis and how do you measure savings after contract award?
Bruce Murray, ERA