European Firms Wasting Millions Buying Marketing Products And Services

Dec. 7, 2011 - PRLog -- Top companies wasting €716m on inefficient marketing procurement
The vast majority (88%) brand current procurement practices ineffective
Four fifths (79%) claim marketing procurement could be more efficient

Europe’s top 500 businesses* could be wasting a combined €716m when purchasing marketing products and services, according to a forthcoming study from  
marketing production specialists Charterhouse.  

David Fincham, Director at Charterhouse (http://www.charterhouseproduction.com), comments: “There is a huge opportunity for big businesses to make significant savings on their marketing.

“Driving purchasing efficiencies will be vital in an uncertain economic environment and in light of shrinking marketing budgets.”  

The study is based on the responses of 200 procurement professionals from across Europe’s 500 biggest businesses. Full results will appear in Charterhouse’s upcoming report, The Marketing Maturity Matrix.

A new hope

Such savings could be a lifeline for businesses, many of which have exhausted traditional procurement savings, the report finds.

Two thirds (65%) of procurement professionals agree that traditional procurement categories are yielding fewer savings than ever before.

Likewise, the vast majority (88%) say their existing procurement practices are becoming less effective.

However, only a fifth (21%) claim their organisations are already as lean as possible.

David Fincham comments: “Most large businesses have been furiously driving out inefficiencies since the start of the recession. As a result, procurement professionals are having to seek out savings in new areas.”

“These professionals rightly have their sights set on marketing procurement. Working with marketers to identify potential savings could help marketing budgets go further and create efficiencies for the organisation as a whole.”

Grasping the nettle

Marketing procurement appears to present a sizeable opportunity for businesses to drive new cost savings post-recession, the study finds.

Almost four fifths (79%) of procurement professionals claim that marketing products and services could be purchased more efficiently in their organisations.

Over a third (39%) agree that these potential efficiency savings are a significant opportunity for their businesses.

A similar proportion (35%) describes marketing as the last real opportunity for procurement to drive significant new savings.

David Fincham concludes: “The potential to identify new savings in an already squeezed environment is great news. But marketing procurement must be approached intelligently to avoid reducing its effectiveness.

“We believe a closer relationship between the two disciplines can drive real savings, without sacrificing the vital creativity and innovation that effective marketing demands.”

Ends.