26 April 2010

WPP and Ad Age again

There is a story on today's Brand Republic re WPP targeting clients technology budgets - intriguing.  Is this on repro, asset management, work flow?.  Be good to understand more about the offering and also the rationale behind it which is linked to a client's increasing digital requirements.  Click here to see the article - WPP technology.

There is an article in today's Ad Age entitled ' Procurement - We're about Value, Not Price'.  They have interviews with the Purchasing people at Pfizer and Intel. It seems to cover the same ground that the numerous other articles have covered - the role of procurement, are they trained, should they make decisions on agencies etc.  Whilst it is good that they are getting that view, it does not seem to move the relationships and this category on.  I do have the article if any one is interested in reading it. 

I am more interested to see the output of the ANA Conference as it is covering some really good topic areas and is about looking to the future.  The future is bright as my old company used to say. 

An interesting Conference (in Florida!)

For once I have just seen a really interesting conference that the ANA in the US are organising this week, so too late to go.  It is their Advertising Financial Management Conference and it covers areas such as production, brand valuation, social media and the best title - 'Procurement: The Good, The Bad and the Ugly'.  Here is a link to it -  ANA Conference.

It has been many years since CIPS organised the annual Marketing Purchasing conference - perhaps it is time to resurrect it?  We are certainly slowing down the learning and education of marketing procurement in the UK.  There are no training courses as far as I am aware that exist at the moment. We were leading the way in Marketing Procurement but I fear we are losing that mantle. 

There is also a blog entry on the ANA site about the conference as well - ANA Blog.

Wish I had booked to go (oh and the location sounds ok as well !).

23 April 2010

The Post Digital World talk

I was on the panel last week for Results International. It was called 'The Post Digital World: Tomorrow's ROI Models'.

Now you, like me, must be wondering where does a procurement person fit into that title (not literally of course). I listened very attentively to the three really good speakers before me talking about the holy trinity of DM, data and digital and then Social media:driving ROI and then Procurement!. Andy Collins from Results then did an up date on valuing your business and current market trends.

There were (luckily) a number of themes that I could pick up on and then talk about.

The first one was about a site called Net Haggler, where you could go on and suggest a price that you would like to pay for the item. I suggested to the audience (mainly agencies) that perhaps we could look at building one of these sites to buy agency services !. Sounds an interesting concept perhaps for low value tactical purchases.

Another point that one of the speaker mentioned was that he had never been asked to speak on ROI in the last 2 years. I was really surprised at that as for me this is one of the key areas that I think Client Procurement can lead on. Too often agencies complain that they see Procurement at the pitch and negotiation stage, and then they disappear after that. Diageo do Supplier Relationship Management really well and I saw in Supply Management that my old company, Orange, are rolling out a SRM program. Make ROI part of that program.

Andy spoke about how an agency can maximise its value if they want to sell. Areas such as being a specialist and not a generalist, developing and having key people that engage with clients and manage costs. All areas that we look at in agency selection. As client procurement we can help agencies be better focused on costs and put the processes and disciplines in place to support their growth plans.

So hopefully I held my own - the scores on the door have not been sent through yet.

I have also written an article for Results quarterly bulletin. It is called 'Why a Commercial Threesome can work'. I cover off some of the trends that we need to look at for 2010. If anyone would like a copy of the article then please do let me know.

11 April 2010

Drinkers unite

There is a good article in the current issue of AdAge about a a landmark deal that mega-marketers PepsiCo and Anheuser-Busch InBev have done. Together they spent more than $1.15 billion on U.S. measured media last year and are now pooling their scale to get savings out of media companies.

The arrangement is an evolution of a "joint-purchasing agreement" the two marketers signed in October. That pact was originally supposed to save the partners money on items such as travel, computers and office supplies. In fact, a PepsiCo spokeswoman at the time said that "the consortium is not related to media costs or marketing."

But less than three months later, A-B and PepsiCo have moved beyond scoring cheaper paperclips and onto network, cable, print and outdoor media buys. A-B and PepsiCo are believed to have already made joint approaches to media concerns such as NBC Universal, Turner and Condé Nast.

As the article then goes into say who will be next to decide to launch their own consolidated buying agreements in an effort to get more costs out of ad time. Then who could be next in line for this "joint-purchasing agreement": agencies ?

What about in the UK ? Could we see Morrisons and the COI team up perhaps ? Interesting area to debate through and let's see what happens in the US and if it spreads ?