Understanding the role of Procurement will help agencies secure more client wins

| 0 Comments

JohannaMcDowell.jpgThis was the finding of Scopen Africa, whose information - obtained from the Agency Scope 2017/2018 study - indicates that 54% of advertising and media agency negotiation processes are led by marketing, while in 41% of those processes both parties (marketing and procurement) are present. The study also found that 63.7% of marketers are influenced by an agency's offering and 36.3% make their final decision based on the agency's costs, which is why procurement needs to be involved.

Procurement needs to be taken seriously by agencies, owing to its focus on selecting suppliers that are viable as well as having sustainable business models and a good track record.

When agencies are looking for business opportunities, being in direct contact with procurement will be useful, advises Johanna McDowell, Partner at Scopen Africa and CEO of The IAS (The Independent Agency Search and Selection Company).

"With procurement's role being relatively new, agencies are contacting them less than they are contacting marketing departments. The Agency Scope study indicates that there is an opportunity here for agencies, owing to the low level of contact by agencies that procurement receives. For example, in 2017, while marketing might have received as many as 27 cold calls from different agencies, procurement only received 6."

Unfortunately, agencies and marketers seem to misunderstand procurement's role. Out of the 217 marketers who were interviewed in the 2017/2018 study, 11% shared that they do not have a procurement department.

The opportunity from a new business perspective is for agencies to introduce themselves to the individuals who work in the procurement department, because they know exactly what the marketing department needs and will be a route to the marketers who have to abide by procurement rules when it comes to bringing on new suppliers. Larger corporations can take up to three months for a new supplier or agency to be included onto a vendor database because of the rigorous internal processes that must be completed. For that reason, agencies who form relationships with procurement early on tend to have the upper hand.

Agencies are thus advised to not bypass procurement as it not only plays an important role in negotiations, but also, ultimately, has a serious role to play in the final decision made by marketers when selecting an agency, whether for long- or short-term projects.

For more information on The IAS, please visit www.agencyselection.co.za.

Leave a comment


SmartProcurement Newsletter
X

Please enter your details below to receive the SmartProcurement Newsletter for FREE on a regular basis.

As part of the SmartProcurement Newsletter you will be receiving World Class Procurement News, Tools, Tips, Tactics, Procurement Training updates, Upcoming Events, and the latest Procurement Career Openings.

* Email Address:
* Title:
* First Name:
* Surname:
* Company:
  Position:
* Country:
* Public / Private:

 

 

Career opportunites

Risk Control Manager

  • <500 000 Gauteng Permanent Procurement Consultant Projects / Category Management
R450 000 - R550 000 per annum.Location: Johannesburg ...More

Demand Planner

  • <500 000 Gauteng Operations, Planning & Inventory Permanent Procurement Consultant
Salary: R500 000 - R500 000 per annum.Location: ...More

Fuel Logistics Manager

  • <500 000 Logistics & Warehousing Operations, Planning & Inventory Permanent Western Cape
Salary: R600 000 - R720 000 per annumLocation: ...More

Supply Chain Manager

  • <500 000 Gauteng Permanent Projects / Category Management Supply Chain
R650 000 - R700 000 per annum.Location: Johannesburg.A ...More

SENIOR BUYER

  • <500 000 Buyer Gauteng Permanent Supply Chain
R500 000 - R550 000 per annum,Location: Midrand,A ...More

Supply Chain Analyst

  • <500 000 Analyst Gauteng Permanent Supply Chain
Salary: R600 000 - R700 000 CTC per ...More

Supply Chain Manager

  • <500 000 Gauteng Permanent Supplier / Business Development Supply Chain
Salary: R600 000 - R700 000 per annum,Location: ...More

Demand Planner

  • <500 000 Gauteng Logistics & Warehousing Permanent Projects / Category Management
Salary: R450 000 - R550 000 per annum,Location: ...More

Demand Planner

  • <500 000 Gauteng Logistics & Warehousing Operations, Planning & Inventory Permanent
Salary: R500 000 - R500 000 per annum,Location: ...More

Warehouse and Distribution Manager

  • <500 000 Logistics & Warehousing Permanent Procurement Management
Salary: R650 000.00 - R850 000.00 CTC pa,Location: ...More

National Supply Chain Manager

  • <500 000 Gauteng Permanent Procurement Management Supply Chain
Salary: R900 000 - R1 000 000 per ...More

Procurement Specialist

  • <500 000 Gauteng Permanent Procurement Management Procurement Officer / Specialist
Salary: R380 000 - R420 000 per annum,Location: ...More

Supply Chain Analyst Lead

  • <500 000 Analyst Gauteng Permanent Supply Chain
Salary: R1 000 000 - R1 100 000 ...More

CIPS Tutor and Coordinator

  • Gauteng Permanent Projects / Category Management Supply Chain
Commerce Edge South Africa,Division: Commerce Edge Academy,Location: Johannesburg, ...More

Warehouse Manager

  • <500 000 Gauteng Industrial Engineer Logistics & Warehousing Permanent
Salary: R480 000 - R600 000 per annum.Location: ...More

Senior Buyer

  • <500 000 Buyer Gauteng Permanent Procurement Consultant
Salary: R600 000 - R650 000 per annum.Location: ...More

Operations Manager

  • <500 000 Gauteng Operations, Planning & Inventory Permanent Supply Chain
Salary: R700 000 - R800 000 CTC per ...More

Warehouse Manager

  • <500 000 Gauteng Logistics & Warehousing Operations, Planning & Inventory Permanent
R400 000 - R480 000 CTC per annum.Location: ...More

Supply Chain Analyst

  • <500 000 Analyst Permanent Supply Chain Western Cape
R400 000 - R500 000 per annum.Location: Cape ...More

Commodity Manager

  • <500 000 Commodities Gauteng Permanent Procurement Consultant
R650 000 - R750 000 per annumLocation: Cape ...More