Hi All,
Last week there were two articles in Advertising Age which spoke to the
increasing participation of client side procurement in the marketing services
arena. The basic message was something I've been saying for years (I can say
that now, I'm over 40) which is: "Classical" or "Commodity" based procurement
does not work well in the creative world of marketing services. There are
elements of "classical" procurement which hold true in any category, but in my
humble opinion the "classical" approach does more damage than good. Ultimately
the "classical" approach hyper-focuses on cost (a feeding frenzy) and fails to search for the best
fit or value! The irony of it all is that actual costs many times end up being
higher because of all the critical nuances the client procurement department
failed, or didn't know, to take into account when making a selection.
However, I'm obviously a fan of procurement. Unfortunately bad news gets all of
the attention. I'm here to tell you that the majority of procurement
professionals want and try to do the right things, have the best of intentions,
and many do an excellent job. However, the good ones don't get any press!
No, it's the rogue "man-eaters" that get all of the attention leading to a
general consensus that all procurement is bad. I'm here to remind everyone that
seeing "Sharks" in the water is a sign of a healthy eco-system. The fact we are
seeing procurement more involved is an excellent indicator to me that we are
close to a healthy economy.
Listen, it's OUR responsibility to prove our value, efficiencies and ability to
do more with less. We in the marketing services industry need to embrace,
tailor and evolve procurement so it works within our creative category.
Procurement and Strategic Sourcing are here to stay. We can continue to fight
it (and lose) or we can actively work to help procurement properly evolve
within marketing services. This can only help make our industry’s eco-system
healthier and sustainable.
What say you?