Skills underpin the power of procurement

Please note that this research is WFA member only content. If interested in WFA membership, please get in touch with our membership team.

Many marketing procurement organisations are navigating significant changes, yet there is strong confidence within the WFA community that the function is here to stay.

The journey post-Project Spring continues, aiming to establish marketing procurement as a profession rather than merely a function. This evolution is not about abandoning past successes, but about enhancing core marketing procurement activities without losing sight of the overall business goal.

Skills in Marketing Procurement is the latest report from the WFA’s Global Sourcing Board, which aims to support WFA members make a pivot within their organisation in advancing the marketing procurement practice while holding on to the fundamentals such as savings and the process work that they do.

As Jennifer McLachlan, VP, Brand Building Purchases, P&G and co-chair of WFA’s Sourcing Board points out in the report, skills are the new currency for successful marketing procurement teams and teams need to explore the root causes preventing skill enhancement.

“To equip our CMOs, CPOs and CFOs with insights into where marketing is heading and reinstate the value of marketing procurement, we need to develop a specific skill set. Ultimately, our role with the Sourcing Board is to help bridge the theoretical gap for WFA members to achieve impactful results,” adds Christopher Kredo, SVP, Global Procurement A&M, PepsiCo and co-chair of WFA’s Sourcing Board.

Previous Sourcing Board publications have introduced a voluntary maturity curve, distinguishing between early stages focused on savings and project pipelines and more advanced stages involving co-created objectives, such as sustainability. The Board’s work provides voluntary guidance on transitioning from one maturity phase to the next, with each phase serving as a foundation for the following one. For instance, in relation to this maturity curve, earlier this year the Board explored how targets in marketing procurement are being set and delivered and how KPIs might vary depending on the team’s maturity level.

The data of this latest research is based on a survey conducted in August and September 2024, resulting in responses from 54 of the world’s largest companies. Respondents were all in marketing procurement leadership roles, with 72% of them having a global remit.

Key findings include:

One in two do not feel their team is future-fit

This is especially true when it comes to new tech and investment areas such as influencers/e-comm, but also due to lack of resources in general. Even among teams currently considering themselves as leading on the maturity curve, 33% still express doubts about their future readiness.

Top differentiating skills are under threat and future skills may still be unmastered

Skills that teams currently excel in and use to stand out, such as ‘negotiation’, ‘contract management’ and ‘project management’, may lose relevance over the next two to five years. The tactical expertise that defines some procurement teams today could risk becoming obsolete tomorrow, creating urgency around upskilling and reskilling to retain differentiation and business relevance.

Using AI might be a way to progress on the maturity curve

While only 24% of teams actively use AI, two-thirds express a strong interest in exploring its potential. Though the primary challenge for stretched teams might be finding the bandwidth to evaluate and implement AI opportunities effectively.

Increased globalisation could put local teams at risk

As teams evolve and globalise, local teams may face reductions. However, diversity in team backgrounds is on the rise. In 2024, only 48% of team members came solely from procurement backgrounds, a decrease from 59% in 2020. Notably, among teams identifying as market leaders, 67% include members with both procurement and marketing experience.

Lack of qualified candidates is a key challenge today

A shortage of qualified candidates remains a critical issue. Despite this, many companies are not investing in internal skill development. Only 28% of respondents find internal development programmes always or mostly relevant, possibly due to their design by individuals with limited marketing procurement knowledge.

In the wake of this research, the goals of the Sourcing Board are to help WFA members identify the unique activities led by procurement that drive business growth or revenues and develop future skills identified in the survey, including strategic thinking, storytelling and creativity.

The Board also addresses current frustrations with internal training. Initiatives could include sharing positive stories, exploring how leading teams are training to maintain their advantage, but also looking at successful use cases of AI to rid the sector of tactical tasks and recentre the team on more added-value activities.

Finally, we’ll explore how to grow the pool of candidates, attract more skilled talent and promoting marketing procurement as a career option.

As Tracy Allery, Global Marketing Category Leader, concludes: this report is designed to help assess “both the maturity of the function and the skills needed for the future”.

That journey is vital if the sourcing is to become a true business partner and “move past the diminishing returns of annually pushing rates, hours, and the seniority of roles. Once a solid commercial foundation is in place, there’s so much more value we can add, particularly as we connect directly to business objectives.”