Build Effective Working Relations
In the future, marketing must think of procurement not only as a tactical function but rather as an important strategic partner. The 2014 report suggests that the long-discussed relationship between procurement and marketing has seen positive changes. While there are some significant distinctions in the way they are viewed, the findings indicate much better levels of trust and relationships between procurement and marketing experts acknowledging that risk reduction and cost reduction are the most significant advantages that procurement can bring to the relationship.
Reduce List of Preferred Suppliers
Consolidation of suppliers is expected to be a top priority for those in charge of marketing procurement in 2015. Lists of preferred suppliers are an effective tool for businesses looking to cut costs on services. Utilizing strategic suppliers that can provide not just one or two services, but also services with added value, are becoming increasingly appealing options to purchase from as rationalization of suppliers is a crucial aspect of cost optimization. Cost efficiency, speed to market geographical location, and capability will become the most important requirements for suppliers that make the preferred list of suppliers, which will remain in decline as supply chains expand globally and suppliers are more flexible.
Supply Chain & Sustainability
Procurement, supply chain, and sustainability will merge in 2015. In particular, the focus will be on the management of ethical, social, and environmental concerns, integrating sustainability into procurement processes, implementing responsible procurement practices, and working with channel partners to handle the last stages of procurement will be integral to the procurement process.
These are becoming increasingly significant aspects that are now a part of an event called that of the Responsible Procurement & Supplier Engagement Conference is at the forefront of thinking-leadership in the field. This means that marketers expect a higher quality of their suppliers. Cheap prices are no longer enough. Suppliers will have to show outstanding sustainability initiatives within their organizations that support procurement decisions and support responsible procurement practices. Sustainability shouldn’t be seen as just a necessity. If it is done right, it can be a major part of an organization’s mission.
Involvement
It is becoming more important for procurement specialists to expand their involvement right from the beginning. Marketing procurement professionals must be involved through the initial idea creation stage up to the final phase of delivery to ensure that the product is suitable. This ties in with the aforementioned relationship-building with marketing, but on top of this, procurement will be looking to build relationships with senior stakeholders and product development departments.
Learn to speak about marketing.
What can marketing and procurement be more effective when they speak the same terminology? Procurement professionals for marketing need to comprehend the importance of ROI for marketers, while marketers must be aware of and cognizant of the benefits provided by procurement. In 2015, we can expect marketing procurement professionals to become more aligned with marketers.
Savings
Not just for 2015, the significance of savings will always be a major trend and a challenge for those working in the field of marketing procurement. The most significant change here is that a single-focused approach to cost savings is no longer going to be a common practice, but instead one element of the procurement mix. In the case of companies for which savings are required the first step will be to have a dialogue with marketing, aided by the new marketing skills of procurement. Savings as a discussion point between procurement and marketing turn into less an issue to be resolved and will become an opportunity to build trust and better relations.
Innovation
2015 will show progress in the current era of technological innovation in procurement. It’s not just about procurement processes in this article as well. The preferred supplier list grows more refined stunning, attractive, eco-friendly, and, if necessary, globalized along with this will come to the need for innovation from suppliers. R&D departments as well as new product developments will make marketing suppliers more appealing in the eyes of procurement specialists.
It’s all about value-added diversification of offerings and the latest developments. In the end, suppliers aren’t the only ones who need to be able to represent the values and principles of their brand that they source from In many instances, suppliers are being seen as an extension of the corporate image. They shouldn’t simply tick boxes, but they should expand them. The best suppliers can increase the creativity of businesses by bringing their ideas to the forefront regularly and promptly.
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