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EVP of IMS New Business Development, Dan Frailey, spoke at ProcureCon Marketing Conference 2018—the only marketing event dedicated to procurement and sourcing in North America. In a comprehensive talk, he shared multiple insights on how to maximize POS spend.

Highlights from the Presentation

Improve real unit costs

    • Excess POS buys cost millions AND 38% of POS is never even installed at grocery
    • Solutions: custom merchandising kits based on categorical store profile data; field ordering portals; compliance verification
    • Actions: Build an efficient platform for data acquisition and maintenance; demonstrate value to stakeholders

Help the CMO solve the oldest problem in marketing

McKinsey reports that even in this age of analytics, we’ve found that 15-30% of marketing spend results in negative ROI

    • Technology makes it both feasible and affordable to bring an analytical approach to brick and mortar—AND THAT’S WHAT CMOs WANT
    • New approach: design of randomized, controlled experiments drives understanding of causality; find tech partner and develop rapid-response capability to execute on insights

Help the CEO win the talent war

    • Make vs. Buy decision—find the right procurement partner
    • It’s about your people—if they aren’t procurement experts, and must focus on non-core work, they won’t be efficient and they can’t be strategic
    • Maximize POS efforts, minimize costs of churn; take a methodical, data-driven approach to evaluation; offload non-core tasks to the right partner

Bottom Line

  • To improve real unit costs—take a smarter, data-driven view regarding a traditional role
  • To help your CMO—get past aversion to change with an analytical, results-driven approach
  • To help your CEO—help ensure the team is focused on what they do best