Procurement marketing – How to reduce the maverick buying rate
What does procurement marketing mean?
Fortunately, it is no longer a secret and has been accepted by many companies that procurement is a value-adding area for the company and can only leverage potential if it is involved in the procurement process at an early stage.
However, it is still often the case that sales, R&D or production bypass procurement to talk to suppliers, obtain quotations or even place orders by telephone and procurement is only used as a typewriter to send the written order.
How can you reduce the so-called maverick buying rate, i.e., procurement bypassing purchasing?
Understand the position of procurement
It is important to understand why the other departments do not include procurement. The partially still weak position of procurement has its origin in the traditional subordinate role as a price giver and order processor as a supporting function that works in addition. In addition, procurement supposedly only spends money and earns none, like sales, for example. In production, too, no one asks what added value this unit creates for the company, because that is where the actual value creation takes place.
The capabilities and potentials that lie dormant in procurement are not sufficiently perceived by the interface partners, who could call up these potentials and use them for themselves. But can you blame the interface partners? Procurement marketing is the solution!
Advertising with targeted procurement marketing – strengthen position
„Do good and talk about it“, that should be the maxim of procurement, proactively approach the other divisions and interface managers in your own company and point out what procurement can do and why cooperation pays off for everyone.
Here is a practical example: The topic of sustainability – climate neutrality, corporate social responsibility (CSR for short) and much more – has become an increasingly important focus for companies in recent years. Not only are customers placing more value on sustainable products, but now the Supply Chain Act is expected in 2021. What does this mean in concrete terms and what does it have to do with Maverick Buying?
Procurement marketing! The Supply Chain Act requires as one aspect transparency about the origin and circumstances of the production of input materials. Quite apart from the CSR-compliant procurement of new materials, the question arises: Who in the company can obtain this information? That’s right, procurement!
Use concrete examples to make it clear to those around you what added value you create and why it is important to involve procurement at an early stage. Show what you can do and reposition yourself!
Use an intranet page, a flyer, employee or departmental roundtables or simply a circular email to do this. This is hard work and takes time, but in the end only those who are brave enough to trust in their own abilities can win.