The Procurement Marketing Trends Shaping 2025

As we navigate through 2024, procurement marketing is experiencing significant shifts that are reshaping how businesses approach their sourcing strategies and supplier relationships.

Here are the key trends driving procurement marketing this year.

Data-Driven Decision Making

In 2024, data analytics has become the cornerstone of modern procurement marketing. Companies are leveraging advanced analytics tools to make informed decisions about their marketing budgets and spending.

For example, Procter & Gamble has been at the forefront of using data analytics in procurement marketing. Their "Consumer Pulse" program analyses vast amounts of consumer data to inform marketing procurement decisions, resulting in more targeted and cost-effective campaigns.

Strategic Supplier Relationships

Building strong, strategic relationships with suppliers has become paramount in procurement marketing. Marketing procurement professionals are actively seeking suppliers who can bring innovation, agility, and market expertise to the table.

Unilever's "Partner to Win" program focuses on developing long-term partnerships with key suppliers. This approach has led to collaborative innovation, such as their work with packaging supplier Mondi to develop recyclable packaging solutions for Knorr dry soup mixes.

Sustainability and Ethical Sourcing

Sustainability has emerged as a transformative force in procurement marketing. Companies are increasingly recognising that environmentally responsible sourcing practices are not just ethically sound but also financially savvy.

Patagonia, known for its commitment to sustainability, has implemented a comprehensive sustainable procurement strategy. They work closely with suppliers to ensure ethical labour practices and use of environmentally friendly materials, which has significantly enhanced their brand reputation.

Integration of Artificial Intelligence

AI and machine learning are revolutionizing procurement marketing processes. In 2024, we're seeing increased adoption of AI-powered tools that provide predictive analysis and automation.

For example, in February 2024 Coupa Software launched a new AI-powered procurement platform aimed at enhancing procurement efficiency through automation. This platform helps retailers reduce costs and improve decision-making processes.

Agile Sourcing Strategies

The rapidly changing business environment has necessitated more flexible procurement marketing approaches. This trend involves shorter procurement cycles and adaptable contracts.

Amazon has been a pioneer in agile sourcing, constantly adjusting its procurement strategies to meet rapidly changing consumer demands. In December 2023, they expanded their procurement technology capabilities by integrating advanced data analytics tools to optimize supplier selection and inventory management.

Focus on Value Beyond Savings

While cost optimisation remains important, procurement marketing teams are increasingly seeking to demonstrate value beyond just savings. This includes looking at creative and production aspects in addition to media.

The World Federation of Advertisers reports that 85% of procurement teams aim to add more value beyond savings in 2024. Companies like Diageo are focusing on how procurement can drive innovation and sustainability in their marketing efforts, not just cost reduction.

Final Thoughts

By embracing these trends, procurement marketing teams can position themselves as strategic partners within their organisations, driving both efficiency and innovation in 2024 and beyond. The key to success lies in balancing cost considerations with sustainability goals, leveraging cutting-edge technologies, and maintaining a forward-thinking approach to supplier relationships and marketing investments.