This document provides tips for agency managers to better understand a client's procurement department and negotiate more successfully. It suggests investigating the size, structure, and goals of the procurement team to determine their true power and influence compared to marketing. Finding details like the rank of the contact person and understanding individual motives can also reveal how much decision-making authority procurement actually has versus just pretending to have power over the selection process. The overall aim is to get a clearer picture of the dynamics between procurement and marketing in the client organization.

1. Better results in dealing with procurement.
A guide for agency manager
Berlin, Jan.,14th 2014
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2. Almost there.
The pitch presentation is over. It showed a clear winner. Not a shadow of a doubt that the
marketing guys want us to work for them.
But harken! Procurement is yet to be passed.
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3. The game.
And these guys have a clear mission! To bargain the best prices they can get.
Procurement would do anything to hinder marketing from showing their passion for our work.
Because then we might be able to ask for higher prices.
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4. “You were the clear winner from the very beginning. However
procurement did not allow us to show.”
An anonymous Marketing Manager
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5. The pretenders.
Whatever marketing says, it should look like the final approval has to pass procurement
before. Thus for all sake procurement generally will deny that marketing has any more
influence on the decision but a recommendation at all and rigorously claim to be the final
decision maker anyway. That is why procurement has to show its muscles and pretend to have
the ultimate power of the force!
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6. “I understand that this is your last word. Please notice that we will
take this as the outcome of our negotiations and you will not have
any further chance to change your offer. So are your sure you stay
with this?”
An anonymous Procurement Manager
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7. Behind the scenes.
In order to come to optimal negotiation results, we have to find out, if procurement really has
the power or if they are just pretending to have.
We have to scrutinize our client´s procurement department. But of course neither marketing
nor procurement will tell us the truth.
So we have to find out ourselves. Here come 5 ways of getting a better idea of the true role of
procurement.
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8. 1. Numbers may tell.
Figure out how big clients 'procurement department is in total and look for the relation between
marketing staff and procurement. The bigger they are, the more important procurement seems
to be and the more influence/power it most likely will have.
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9. 2. Structure may show.
Find out about the structure of clients’ procurement department. Are there any particular or
specific procurement departments or responsibilities? The more specialized, the more
influence/power it most likely will have.
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10. 3. Ranks may hint.
Who is our contact person within clients‘ procurement? The more the client estimates the
importance of our work for their overall business success, the more senior by rank our contact
person in procurement will be.
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11. 4. Goals may rule.
Find out more about the current business objectives of our client. Procurement certainly will
have a tactical role within the overall strategy. And if the overarching targets are for example
cost savings through the lines, you can bet on the power of procurement.
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12. 5. Motives matter.
Believe it or not. At the end even procurement people are human beings with individual
targets, feelings, likes and dislikes. It isn’t a mistake to know about their personal motives too.
And after all don’t forget: It’s a game and everyone is trying to do his or her best J
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13. “The most successful man is he who has the best information.”
Benjamin Disraeli
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14. Contact.
The author supports advertising agencies as interim-manager and consultant.
Get in touch with Kai:
Kai.loehde@loehde.com
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