PepsiCo's decision to axe marketing procurement 'not part of wider trend'

| 0 Comments

 

pepsi.jpgPepsiCo’s decision to close down its marketing procurement department in order to become more “efficient and effective” will not become an industry trend, according to two thirds of professionals surveyed by the Association of National Advertisers (ANA) in the US.


Food and drink maker PepsiCO closed down its centralised marketing procurement department, which had responsibility for managing agency and media relationships across different brands, and moved a number of the 12 staff members to elsewhere in the business. There have also been some redundancies.

 
Procurement responsibilities will now sit with marketing executives within each of PepsiCo’s brands, including 7UP, Walkers and Tropicana.


“These changes are made with careful consideration and are necessary for us to stay competitive while meeting the future needs of our business,” a company spokesperson said. “Unfortunately, as a result of these changes, some positions have been impacted. These are never easy decisions but we are committed to supporting affected employees by offering severance packages and comprehensive career transition support.”


However, 68 per cent of 148 procurement and finance professionals surveyed by the ANA answered “no” to the question: “Do you think PepsiCo’s move is indicative of a wider industry trend toward the elimination of marketing procurement departments?” Some 17 per cent said they weren’t sure.


Respondents stated that procurement has expertise in areas such as negotiation, supplier management and risk management that marketing and brand teams lack, and the role of marketing procurement is to bring value and efficiency that allows marketers to focus on marketing. “If marketing teams are responsible for procurement, they risk becoming less effective,” one respondent added.


But respondents also said the goals between marketing and procurement must be aligned, marketing procurement must “add strategic value beyond price” and to be effective procurement must understand marketing.


Bill Duggan, group executive vice president of the ANA, said: “Procurement can still bring significant value to marketing. That allows marketers to do what they do best: marketing. At the vast majority of ANA member companies, marketing procurement is not going away.”

This article first appeared in Supply Management
 

Leave a comment


 

 

Career opportunites

Planner

  • <500 000 Gauteng Operations, Planning & Inventory Supply Chain
Are you looking for new career opportunities as

Procurement Specialist

  • >500 000 Gauteng Procurement Officer / Specialist Strategic Sourcing Supplier / Business Development
As a specialist Supply Chain recruiter, I am

Logistics Controller

  • <500 000 Gauteng Logistics & Warehousing Procurement Officer / Specialist
Seeking dynamic up and coming candidates looking for

Supply Chain Manager

  • >500 000 Permanent Procurement Management Supply Chain Western Cape
As a specialist Supply Chain recruiter, I am

Business Process Specialist

  • <500 000 Gauteng Procurement Consultant Procurement Officer / Specialist Supply Chain
A company within the financial services sector is

LOC Procurement Manager

  • Gauteng Permanent Procurement Management Procurement Officer / Specialist
Your Responsibilities: Job Purpose To be the interface ...More

Account Manager

  • >500 000 Procurement Officer / Specialist Supplier / Business Development Western Cape
Key Performance Areas:• To ensure that all aspects

Consultant

  • >500 000 Gauteng Procurement Consultant Strategic Sourcing Supply Chain
Key Performance Areas:• You'll be concerned primarily with

Commercial Buyer

  • <500 000 Buyer Contracts Procurement Officer / Specialist Western Cape
A well-known Mining company is seeking the services

Technical Buyer

  • <500 000 Buyer Contracts Procurement Officer / Specialist Western Cape
A well-known Mining company is seeking the services

Business Development Executive

  • >500 000 Gauteng Supplier / Business Development
A retail solutions company is seeking a New

Financial Manager

  • >500 000 Contract Operations, Planning & Inventory Procurement Management Western Cape
Looking for an unemployed CA (SA) in Cape

Chief Financial Officer

  • >500 000 Gauteng Operations, Planning & Inventory Procurement Management
An exciting opportunity exists for a CFO with

Procurement Consultant

  • >500 000 Gauteng Procurement Officer / Specialist Strategic Sourcing
Key Performance Areas: A profound knowledge of sourcing

Commodity Specialist: IT

  • >500 000 Commodities Gauteng Procurement Officer / Specialist
Key Performance Areas:• Effectively applies acquired technical/functional skills

Senior Consultant

  • >500 000 Gauteng Projects / Category Management Supplier / Business Development
Key Performance Areas:• Adheres to best practice processes

Logistics Manager

  • >500 000 Gauteng Logistics & Warehousing Operations, Planning & Inventory Procurement Management
Key Performance Areas:• Manage warehousing and distribution 3PL's

Head of Franchise Network

  • >500 000 Contracts Operations, Planning & Inventory Western Cape
The opportunity to work for a multinational retail

National Driver Manager

  • >500 000 Analyst Contracts Logistics & Warehousing Operations, Planning & Inventory Western Cape
The opportunity for an extraordinary individual to join

Commodity Specialist: Industries

  • >500 000 Commodities Gauteng Procurement Officer / Specialist
Key Performance Areas:• Under the guidance of the