Towards the end of last year, PepsiCo sent shockwaves through the business world when it announced the dissolution of its marketing procurement department. Responsibility for agency spend and other fees now sit with the business’ individual brands.
Many in the marketing industry have welcomed the change. Some see it as a means to bring in creative agencies and new ways of thinking that would otherwise have struggled to get through an inflexible procurement process. Others see it as an opportunity to take full advantage of new technological solutions. The issue here being that as new opportunities open up, the level of knowledge required to fully understand them goes beyond that of a non- specialist. As a result, some have argued that procurement is not well placed to judge the value of certain solutions.