Here's how marketing procurement professionals are combatting rising inflation in 2023

The rise in demand for goods, supply chain bottlenecks and the war in Ukraine has created the perfect storm for sky-high inflation across the globe. As a result, procurement marketing professionals are tasked with doing more with less, while delivering on the relatively newfound strategic role that procurement now performs in many organisations.

As inflation continues to rise, they must adapt to an ever-changing market, battling higher prices and increased competition. All of this must be achieved while ensuring corporate marketing strategies are carried out - and without losing a competitive edge.

To discover the latest challenges and innovative solutions being implemented by leaders in procurement, read 2023’s ProcureCon Playbook.

A recent study by Beroe covers industry case studies and key best practices of procurement marketing professionals navigating inflation while providing value. Some of the innovative solutions that are being deployed involve assessing vendor relationships and implementing new technologies as a cost-cutting solution, and efficiency booster.

Here, we take a look at how procurement leaders are combatting inflation.

Building new relationships and strengthening old ones

Building and strengthening supplier relationships is key to procurement marketing professionals shielding against the harshest impacts of inflation. By strategically identifying high-level suppliers that can support the overall marketing strategy, resilience can be driven. Additionally, by building relationships that work for both parties a culture of collaboration can be fostered. Equally, committing to longer-term partnerships can encourage loyalty and a more flexible relationship, which will help when, for example, payment periods need to be extended.

As procurement marketing professionals look to get more out of suppliers without additional funding, offering flexibility can be a great way of negotiating certain costs and deliverables that must be reviewed. It is easier to get a 'win' when you are offering one in return.

Leveraging technology to automate, analyse and optimise

The increased adoption of technology is playing a critical role in enabling procurement marketing professionals to combat inflationary pressures. By leveraging automation, artificial intelligence (AI), advanced analytics and blockchain technology, cost-saving opportunities and efficiencies can be identified and contract management can be enhanced.

Automation technology is being used to automate labour-intensive procurement tasks such as supplier identification, invoice processing and contract compliance monitoring. As procurement is now a C-Suite level role in many organisations, increased automation is allowing procurement professionals to redirect their efforts towards more strategic activities such as supplier relationship management and cost optimisation.

AI technology is also driving cost savings by analysing procurement data to identify patterns and inform strategic decision-making. With advanced analytics, procurement marketing professionals can gain a deeper understanding of customer behaviours and preferences, which is informing more targeted and successful marketing campaigns. Blockchain technology, on the other hand, helps track the provenance of goods, ensuring that suppliers meet their contractual obligations.

Recognising opportunity and value in difficult times

Despite the increasingly difficult task of navigating inflation, there are opportunities for procurement marketing professionals to achieve more with less.

Creating a strategic roadmap and identifying where new and old relationships can be strengthened while key technologies are leaned on is driving cost savings, enhancing marketing campaigns and revealing new opportunities for growth. With the right strategy, marketing procurement professionals can deliver key strategic support for their organisation despite the complex, inflation-induced challenges they are tasked with overcoming.

To uncover the latest trends in procurement marketing, and benchmark against your peers, download the ProcureCon Marketing 2023 agenda now.