Five to eight years ago, procurement teams talked about wanting more influence over certain sourcing categories. Now, CPOs’ tendency toward value creation is so well established that it shapes a wide variety of business units. More and more departments are happy to enlist procurement’s expertise, whether on category-specific practices or the technological impact, as CPOs get acquainted with solutions that don’t just cut costs—they deliver value.
One such area of spend is marketing and translation. Data in a recent ProcureCon CPO Study show that 92 percent of CPOs in multinational organizations have either some, a fair amount of, or fully strategic influence on sourcing these services. In other words, CPOs have become critical to taking the organization global.
If this sounds like your company, you might be interested in the following data points from the study. The Slideshare explores how CPOs put ROI-driven global marketing solutions front and center:
For even more insights, download a free copy of the full study.
Procurement’s role in enabling the global marketing strategy
According to this year’s ProcureCon CPO Study, procurement departments are starting to exercise more influence over sourcing their organization’s global marketing and translation services. Over half of CPOs say they play an active role right from the beginning of a project.
This presents CPOs with a much stronger opportunity to build long-term value compared to what they’ve known in the past, when procurement was typically cost-driven and enlisted late in the decision-making process.
So how are they taking advantage of the opportunity?
Let’s take a look at the three most important factors CPOs consider when exploring services fit to meet organizational goals.
In the study, respondents were asked: “How important, on a scale of 1-5, are the following attributes when making marketing/translation purchasing decisions?” Here’s what the survey found.
Respondents pinpoint the quality of a service provider’s work as the most important of eight given attributes. 65% of respondents consider quality the biggest factor in their purchasing decisions, while only 9% feel neutral or consider it least important.
The runner-up was expertise in a certain industry, which 46% of CPOs deem the most important detail in their strategic decisions. 9% say they are unlikely to look for industry-specific capabilities.
Innovation came third in CPOs’ thought processes. However, while only a small proportion of respondents deprioritize innovation, as with the other two attributes, the vast majority (40%) sit on the fence.
So: value trumps cost
Procurement’s commitment to value creation is reflected in the fact that the three most commonly cited must-haves in marketing and translation are not cost-related. Instead, they all pertain to the reliability of high-quality output from a supplier.
That said, other factors highlighted in the report—including cost—haven’t been forgotten. Along with the references a supplier can provide, these factors are worth examining during due diligence.
To learn more about other attributes CPOs evaluated as beneficial (or not so beneficial) to purchasing decisions, download the full report: Charting the Technological and Strategic Transformation of the Procurement Department