Procurement Structure

Posted by adairsawyer on April 25th, 2013

Procurement structures face the challenge of delivering increased returns to the enterprise while containing the function's operating costs. A common approach to achieve these goals is to revisit the procurement organization structure. By restructuring staffing models, reporting relationships, productivity measures, and even the scope of the function, CPOs aim to coax higher levels of performance from their function without increasing resource commitment.

The Council's in-depth research on procurement organization structures and performance, examines trends and tradeoffs associated with competing models. The findings point to considerable progress in achieving savings targets and managing functional costs. Now that much of the "low hanging fruit" has been harvested, the looming challenge for CPOs is to evolve the organization's structure and mission to track with shifting client priorities and find new sources of value for the enterprise.

Marketing procurement conferences start out with discussions between agencyes and marketing and procurement executive, each sharing what they bring to the table, what they aim to achieve and what hinders them – so things get clear in the open. Also, executivesfrom important companies are invited to share how their engagement and collaboration has effectively progressed. After that, discussions continue with a deep dive into the actual challenges so those present could face a series of roundtable discussions, such as how to articulate the value proposition and achievements of procurement’s involvement to both the CMO and CFO.

Center-led (or "hybrid") procurement structures lag behind centralized and decentralized models across a range of procurement performance indicators-cost savings, functional costs, and spend coverage and compliance. In theory, hybrid structures capture the benefits of both "pure form" models, balancing top-down strategy development with increased business alignment and more effective execution. In practice, however, the greater complexity of hybrid structures often results in poorly defined roles and responsibilities, unclear decision rights and coordination difficulties.

Marketing procurement conferences have as a purpose to focus on consolidating marketing across BUs and geographies. Roundtable discussions tackle a number of agency-related challenges such as how to consolidate agency roster and procurement processes that add value for both client and agency.

Marketing procurement conferences also deal with discussions regarding developments in consumer behavior and how this affects the marketing category. How will technology change marketing going forward? We then discuss how to apply smart procurement principles to the new media frontier, digital metrics and KPIs, the impact of marketing digitalization – and required adjustments for marketing, IT and procurement; new technology and spend patterns. These are important subjects that a procurement structure needs to clarify in order to obtain efficiency.

Marketing procurement conference makes a step towards an efficient procurement structure .