C-suites need to better understand investments in marketing procurement to be successful

2024 trends in Marketing Procurement — from 10,000 feet

by Christine Moore, Managing Partner, RAUS Global

Sometimes, marketing procurement has a hard time to get buy-in for strategic projects (and money to invest in those projects) from other members of the C-suite, including both the CMO and CFO. We have taken a stab as summarizing the key strategic trends in marketing procurement that are crucial in 2024:

1. Digital Transformation and Automation: The acceleration of digital transformation continues to influence marketing procurement, with a focus on automating procurement processes for efficiency and effectiveness. Tools and platforms that enable digital sourcing, contract management, and supplier relationship management are increasingly essential.
2. Sustainability and Ethical Sourcing: Companies are prioritizing sustainability and ethical considerations in their procurement decisions. This includes selecting supplier partners that adhere to environmentally friendly practices and social responsibility standards. The drive for sustainability is not just ethical but also responds to consumer demand for responsible brands.
3. Strategic Supplier Partnerships: There’s a shift from transactional relationships to strategic partnerships with key supplier partners. This trend emphasizes collaboration, innovation, and value creation beyond cost savings. These partnerships help in navigating market changes, ensuring resilience across supplier partners and sub-contractors, and fostering innovation.
4. Data-Driven Decision Making: The use of data analytics in marketing procurement is becoming more sophisticated. Data insights drive strategic decisions, from supplier partner selection and negotiation to spend analysis and market intelligence. This trend supports more informed decision-making and optimization of marketing spend.
5. Focus on Marketing Technology (MarTech) Investments: With the rapid evolution of digital marketing, there’s an increased focus on procuring and managing MarTech solutions. This includes tools for customer relationship management (CRM), content management, analytics, and automation. Procurement plays a key role in selecting the right technologies to drive marketing efficiency and effectiveness.
6. Risk Management and Compliance: Given the dynamic global environment, risk management and compliance are top priorities. Marketing procurement teams are more involved in assessing and mitigating risks related to supplier partner and sub-contractors’ failure to uphold contractual terms, data privacy, and regulatory compliance.
7. Agility and Flexibility: The ability to adapt quickly to market changes and consumer behaviors is crucial. This means adopting more agile procurement practices, such as flexible contracts and dynamic sourcing strategies, to respond to the fast-paced marketing landscape.
8. Increased Focus on Total Cost of Ownership (TCO): There’s a growing emphasis on understanding and optimizing the total cost of ownership for marketing investments, rather than focusing solely on upfront costs. This includes considering factors like long-term value, efficiency gains, and the impact on brand reputation.
9. Integration of ESG Criteria: Environmental, Social, and Governance (ESG) criteria are increasingly integrated into procurement decisions. This aligns with broader corporate responsibility goals and responds to stakeholder demands for sustainable and ethical business practices.
10. Talent and Skills Development: As the role of marketing procurement becomes more strategic and complex, there’s a focus on developing skills in areas like data analytics, strategic sourcing, and relationship management. This ensures that teams are equipped to navigate the evolving marketing ecosystem.

In 2024, marketing procurement is not just about cost management but plays a strategic role in driving innovation, sustainability, and resilience in the marketing supply chain. C-suite leaders must recognize these trends and adapt their strategies accordingly to maintain competitive advantage and meet the evolving expectations of consumers and stakeholders.