The procurement department is playing an increasingly significant role in negotiation between marketers and their agencies. This is unlikely to change in the foreseeable future; in fact, if anything, the department’s role is set to become even more important. According to research findings from Scopen Africa (a local division of the Spain-based agency Scopen) in 51% of negotiations with agencies the procurement department is involved jointly with marketing in the negotiation process, says Johanna McDowell, managing director of the Independent Agency Search & Selection Company (IAS), and co-owner of Scopen Africa. “It’s not hard to see why procurement has become increasingly involved in pitches, contact negotiations and vendor management, considering legislation and BEE requirements. Procurement’s involvement is a legal requirement for government contracts, and advisable for large corporates,” says McDowell. Given that sustainability is a priority for most organisations at present, ...
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