Training in Media Procurement for a Russian-French Bank

Task

To resolve conflict by improving literacy of purchasers through expanding the insights in media-services market. Employees must learn to assess vendor offers, know the process of media procurement and be able to find a common language with internal client.

Client

Major Russian-French bank. Ranks among TOP20 Russian banks.

Type of service

Trainings in Procurement

Period

April 2016

Case

The company had a poor understanding of media purchasing category by employees of the procurement department. During tenders, confrontations arose between the procurement department and the internal client due to the lack of uniform criteria for supplier selection. The procurement department offered to link the supplier choice to remuneration of the agency. At the same time, they did not take into account other factors – control over budget for media purchases, terms of payment, etc. A tender winner could be a company with a weak proposal in terms of media purchasing strategies and scope of services provided.

The Process

1. Interview and identification of requirements

We reviewed the company’s requirements for a planned procurement tender. We looked at the tasks that were assigned to a potential service provider. We compared requirements with procurement policy, including terms of payments. We studied the tender specification and conducted interviews with the procurement department employees.

We reviewed the company's requirements regarding the tender
We studied the tender specification and conducted interviews with employees
2. Conclusions

We saw a poor understanding of media-purchasing category and potential risks.

Based on the results of preliminary analysis:

  • incorrect preconditions for assessing suppliers revealed

The procurement department employees focused on remuneration, which is 5% of costs. The tender specification did not include terms of payment and scope of responsibility of the media agency. No attention was paid to the quality parameters of the agency. For example, the discounts refunds from media channels to client, the strategy of media purchases, etc.

  • communication problems were identified

The procurement department did not effectively interact with the internal client due to a poor understanding of the subject matter of a purchase. Conventional approach proposed by the purchasers led to risks that the internal client warned about.

3. Training session

During the training, the employees learned:

  • Basic concepts of media-procurement – types of services, terminology, types of media, opportunities for optimization and discounts
  • Correct phrases for preparing the proper tender specification
  • Trends analysis in media market over the past year and recommendations for the current year
  • Principles of procurement TV and other channels advertising on the example of the client’s case

Outcomes

The procurement unit staff got better understanding of the category and the requirements of internal clients that reduced tensions between the departments.

 

Other achievements on the project:

 

  • Agreement between the procurement department and the internal client on the optimal criteria for selecting a supplier
  • Decrease in the reputational risk, since one of the ways out of the situation was to cancel tender results
  • Reducing the risk of over-pricing by suppliers
  • Recommendations on negotiating with media agencies, risk assessment, drawing up contracts, managing contracts and category

Transparent and clear tender process for media purchasing

Customer Feedback

Director of Procurement Department

“In a short time, the department staff learned about the basics of media purchasing and about what to pay attention to first of all. This made it possible to strengthen the procurement position when communicating with the internal client and allowed the purchasers to look competent in the external market.”

Tools

Insights in market, category, and functional area

  • knowledge of media-purchasing industry: 10 media tenders for large companies have been completed
  • knowledge of the specifics of procurement in general. Experience in the implementation of more than 70 procurement projects
  • knowledge of open information sources required for media purchasing
  • experience gained at 9 conferences of media agencies, networking
  • insights in vendors market, the specifics of media agencies operations

Procurement Methodology and Best Practices

  • Own methodology for sourcing and optimization of media-purchasing
  • Document templates: requests for information, RFP, Technical specifications, contracts
  • Materials for training: presentations, checklists, tasks
  • Own training methodology
  • Best practices applied at multinational companies

Skills

  • Negotiating
  • Training
  • Communication with stakeholders, suppliers, management
  • Strategic thinking
  • Analytic skills
  • Assessment of stakeholders’ personal potential

Get a consulting session for free

Submit a request if your company faces similar issues. We will identify the requirements and train your employees to perform the assigned tasks effectively.

By clicking on the button you give your consent to the processing of personal data

Thank you! We will call you back soon.
Oops! Something went wrong while submitting the form.

Other projects of the category

view all projects

Trainings in Procurement

Negotiation Training for Association of Communication Agencies of Russia