The need for a new approach to complex, global supply ecosystems
Customers are punishing companies they no longer trust. Research conducted by Proxima revealed that 45% of consumers would stop spending with a company whose supplier practices were called into question.
What's more important than growth and customer relationships?
Move over business growth and customer relationships; if slavery isn’t on your boardroom agenda you’re not only missing a trick, but you could be falling foul of the law. The Modern Slavery Act 2015, which aims to stamp out modern slavery, forced labour and human trafficking in the supply chain, has serious implications for vast swathes of business. Around 12,000 organisations in the UK across a variety of sectors are predicted to be affected. But with change comes opportunity – the opportunity to beef up best practice among procurement partners and tick a very large customer box in the process.
Supply Management: Purchasers failing to pass on supplier insights to wider business
Supply Management highlight that 81% of procurement professionals do not pass on supplier insights to the wider business, according to a study by Proxima. The study of 40 senior procurement executives finds that there is a disconnect between information being collected from supppliers and the insight that business leaders use to make strategic decisions.
B2B Marketing: $38bn of worldwide marketing budgets wasted on poor digital marketing
B2B Marketing look at Proxima's research into the Digital Disconnect; exploring why the inability to measure the effectiveness of digital marketing means that up to $38bn of global marketing budgets are being wasted every year.
Spend Matters: Proxima - a provider to know in 2015
Spend Matters highlight Proxima as a Provider to know in 2015. Discussing our services and overall approach to procurement, Spend Matters note that "Proxima is certainly a firm to have on your shortlist for pretty much any procurement outsourcing opportunity".
Harnessing supplier insight to spot crises and opportunities
If like the rest of the world, you’ve been keeping a close eye on the movement in the market over the past week or so, from the sudden slump, to the rapid recovery, you may have found yourself asking the same questions being asked by nervous boards the world over. Why did no-one see it coming?
On the front foot: Procurement’s response to economic fears
For many businesses around the world, it has become suddenly apparent how close the connections between European / US and Asian economies are - with the suddenly tumultuous Chinese economy having a global impact. An impact that will no doubt continue to swing wildly over the coming weeks, even months.
The procurement community has long bemoaned its internal reputation as a relatively un-strategic cost centre. While that reputation has been, at least sometimes, well deserved, the promise of an innovative procurement programme offers benefits well beyond purchasing discounts.
Digital Marketing Magazine: Six in ten digital adverts are not seen by humans – so where is the value in digital marketing?
Digital Marketing Magazine discusses Proxima's latest research: TheDigital Disconnect which highlights up to 35% of all web activity fraudulent or artificial and 54% of online ads not even seen by a human – the truth is that between 40% to 60% of global digital spend is potentially wasted.
MyCustomer: Has digital marketing moved from high impact to high risk - and how can procurement help?
MyCustomer discusses Proxima's latest research: TheDigital Disconnect highlighting CEOs and CFOs are becoming increasingly concerned by the lack of business transparency regarding the commercial impact of digital marketing. From wasted investment to the risk associated with brand damage, digital has fast moved from high impact to high risk.
Spend Matters: 6 in 10 digital adverts are not seen by humans - so where is the value in digital marketing
Spend Matters discusses Proxima's research: TheDigital Disconnect. While digital may be the fastest-growing channel, with spend on digital marketing set to consume around 50 percent of total advertising budgets in the UK, how much of that investment is reaching the right audience?
Wallblog: Infographic - Six in ten digital adverts are not seen by humans
Wallblog provide key highlights from The Digital Disconnect infographic, available here. The infographic outlines trends from our recent research into digital marketing spend. Digital may be the fastest growing channel, with spend set to consume around 50% of total advertising budgets in the UK. But the research asks how much of that investment is reaching the right audience?
The digital debate - are digital budgets being wasted?
The importance of being able to assign tangible ROI to a multi-faceted marketing campaign that uses both traditional and digital methods is a top priority to brands, according to participants on our recent digital marketing panel discussion.
Buyers Meeting Point: Webinar notes - The Digital Disconnect
Buyers Meeting Point outline the highlights from the digital disconnect webinar, available here. Webinar panelists Mark Simester, Marketing Director at Warburtons, Charles Ping, Chief Executive at Fuel, and John Butcher, Marketing Specialist at Proxima outlined in the webinar how procurement can play a role in better managing digital marketing spend.
An executive's guide to driving better commercial outcomes from digital marketing
The digitization of media has created a plethora of new opportunities for companies to better communicate, connect and deliver goods and services to the world. However, in this fast moving environment, how many are investing in the right digital tools and channels to support key business objectives?
Aligning procurement to get more from your marketing spend
The marketing landscape is an ever evolving entity; with trends, movements and best practices as changeable as the wind, marketers face the often insurmountable challenge of constantly staying ahead of their competition. And, while there are many opinions on where marketers should be focussing their attention, or “the biggest challenges for CMOs today” (a quick google search will deliver a plethora of articles), something that will always remain a critical consideration for marketers is the ability to get more from their marketing spend.
Up to 60% of global marketing budgets being wasted every single year
LONDON, UK - 3 August 2015 - New research by procurement services provider Proxima, finds that spend on digital marketing such as search engine optimisation, mobile apps and video-on-demand services in 2015 is failing to deliver the value companies should expect. With 50% of total advertising budgets in the UK (totalling around £7.9bn), and around 30% in the US (around £32.9bn) being spent on digital marketing, poor commercial management means brand and commercial content is not reaching the right audience.
Quite often, we use this blog to discuss the increased reliance companies have on their global network of suppliers – the notion of corporate virtualization - and the importance of carefully managing suppliers and understanding their behavior and ethics. We have seen and written about many circumstances in which a supplier-related failure or business behavior has impacted a company’s reputation or bottom line. In many ways, company and supplier have become one, with the lines between the two increasingly blurred.
Leading businesses see procurement as a value, not a function
It’s not often that a story about new supply chain management software becomes a feature in a publication as respected as The Wall Street Journal. For that to happen, the deployment of said software has to represent something much more significant or herald a trend of highly compelling proportions.
Spend Matters: Proxima research - how to fix the 60 percent of digital budget spent ineffectively
Spend Matters discuss Proxima's research: TheDigital Disconnect, which explores why global companies are wasting up to 60% of digital marketing budgets through commercial mismanagement of spend, plus offers best practices for overcoming this disconnect.
The length of a relationship between marketing agency and client is often a relatively accurate measurement of a successful partnership. Though every agency-client relationship is structured differently, particularly now with so many specialist agencies in the market, recent studies suggest a typical contract length is in the vicinity of three years. That’s not a very long time, particularly when compared to the typical relationship length between company and legal representation or company and auditing firm (and also when taking into account the time it takes to on-board a new agency).
Media Post: Viewability + fraud = you're wasting a lot of money
Media Post explore Proxima's latest research into The Digital Disconnect, highlighting why global businesses are wasting up to 60% of digital marketing budgets on ineffective digital marketing activity.
Digital Marketing Show: Up to £37bn of global marketing budgets being wasted every single year
Digital Marketing Show discuss Proxima's Digital Disconnect research, which explores why companies are wasting up to $37bn of global marketing budgets every year due to ineffective digital marketing practices.
Strategy Eye Digital: Digital ad bubble in danger of bursting
Strategy Eye Digital report on the increasing disconnect between the money spent on digital advertising and the actual return on investment. Highlighting Proxima's latest research: The Digital Disconnect, Strategy Eye Digital take a look at the reasons behind this disconnect and how companies can overcome it.
US retailer plays chicken with notorious egg supplier
When a major, well-known and generally respected retail brand retains a supplier with a shady track record for food sourcing, it should hardly be a surprise when that supplier drags that retailer into a PR fiasco. In the recent case of a popular US retailer (which stocks everything from cleaning supplies to electronics to groceries), and Hillandale Farms of Gettysburg, the question of “the chicken and the egg” and which comes first is quite a literal one, as it relates to who gets the blame.
Tesco aside, supermarket-supplier relations improve in the UK
We are in an age where companies of all shapes and sizes turn to global suppliers more than ever before. There is perhaps no group of companies more reliant on suppliers than supermarket chains. Without suppliers, the supermarket chain is nothing more than a store with empty shelves, baskets and a neon sign.
Five reasons why supplier relationship management is important
Ask ten people to define “what is supplier relationship management (SRM)?” and you’ll get ten different answers. My version is that it’s a means of aligning your business appropriately with your suppliers. Yet it’s far less well understood (and adopted formally) than CRM. So why should we in procurement be bothered?
Proxima discuss why auditing needs a check-up in April's edition of in-procurement magazine from in-tend. Looking at the current reforms and regulations, Proxima's Richard James identifies the opportunities that have arisen from this changing audit market, and how companies can use these to their advantage when tendering their audit. Find the full article on page 34.
For some time, we have been talking about the opportunities for procurement and supply chain specialists to assume larger, more significant roles within their organizations. These opportunities have emerged as the supply chain has become more complex and companies grow more reliant on suppliers to fulfil their respective business promises.
The Webster's dictionary defines success in a fairly straightforward way – an accomplishment, or meeting of an aim or objective. Success in the procurement field, however, is a more nebulous concept. Perhaps that’s because procurement’s objectives aren’t usually clearly defined. Or perhaps, more accurately, it’s because procurement’s objectives are defined quite differently by its practitioners and the business leaders they serve.
Business Wire: NelsonHall launches NEAT vendor evaluation & assessment tool for procurement BPO services
NelsonHall have launched a tool to assist strategic sourcing managers in assessing vendor capability in procurement BPO services. The NelsonHall Vendor Evaluation and Assessment Tool (NEAT) for procurement BPO enables sourcing managers to differentiate between providers by showing how vendors are positioned within a specific market segment.
Aligning your procurement mindset to the growth agenda
Growth is back on the agenda. Actually, in an increasingly lumpy economy, for many businesses it never went away, despite the vicissitudes of national and regional economies. (“Vicissitudes”? Well, the UK grew robustly in Q4 2014, then posted its slowest GDP gains for three years in Q1 2015…) And with the ongoing prevalence of risk in many markets, we’re in a period where organisations want to expand, but just don’t seem ready to invest, spend and grow in the way that macroeconomic data suggests they should.
CPOs: Beware false confidence in your procurement function
A recent Deloitte survey of Chief Procurement Officers suggested that more than 50% of CPOs are optimistic about their role and confident in their department’s abilities, but also raises flags about just how much of that confidence is warranted.
New study suggests American consumers intend to punish companies involved in supplier-driven scandals
NEW YORK, NY and London, UK – May 14, 2015 – A newly published survey suggests that companies who are not actively monitoring the business practices of their suppliers, or who are engaged in questionable supplier practices themselves, are placing their reputations and their balance sheets in harm’s way.
Spend Matters: How change management can change procurement for the better
In this article Spend Matters discuss why change management initiatives can have a huge impact on procurement. Featuring Proxima's research into the current perceptions of indirect procurement, the article offers insight and statistics supporting the need for improvement in change management initiatives.
Spend Matters: Influencing change - the solution to procurement's change challenges
Spend Matters and Barbara Ardell discuss influencing change in the first of this two part article; addressing the challenges that procurement faces, discussing attitudes towards procurement and featuring Proxima's research into current perceptions of the procurement function.
Is Microsoft its suppliers’ benevolent benefactor or dictator?
Last week, the technology giant Microsoft took a progressive stance with its supplier base, taking steps to ensure that the suppliers with whom it conducts business give their employees at least 15 days of paid leave each year. Sure there’s the questionable policy of corporate dictation (especially in the case of Microsoft, with its Samson and Goliath overtones). And, there’s the inevitable fine print: “this new benefits minimum will apply to suppliers with 50 or more employees in the United States. It will apply to their U.S. employees who have worked for them for more than nine months (1500 hours) and who perform substantial work for Microsoft.”
New US legislation takes aim at supply chain slave labor
In our blog and in our ongoing dealings with clients, we continue to advocate the importance of having explicit insights and knowledge into the business practices and ethics of those companies that live within one’s supply chain. We’ve pointed quite extensively to our corporate virtualization research that reveals just how much modern organizations rely on external suppliers for the services and goods necessary to not just run a successful business, but to have one in the first place. The importance of supply chain visibility has grown exponentially in recent times, as has the potential negative impact failures can have on brand and profitability.
Procurement is the 'marriage counsellor' between agency and client
I’ve been noticing more and more the disconnect between agency fee and creative output. My observation is that a significant number of buyers (more than you might think) that pay a premium on agency fees, rarely get the best creative work. This observation fuelled a recent panel discussion I sat on during this year’s Advertising Week Europe.
The evolution of the audit market - live discussion
Every five years companies in the FTSE350 will have to rotate their auditing partner, and it is interesting for me to see how that will help drive the timing of when the remaining companies that haven’t tendered, choose to tender and who they choose to include in the tender process.
Spend Matters: Why humans win over machines and speed in outsourcing
Spend Matters feature our very own Richard James, Category Director for Professional Services in their hot topic of procurement outsourcing. We look at what companies should consider when looking for a procurement company to help with outsourcing.