Agencies & Marketing can work better with Procurement

Tip #1: Appreciate that the best Strategic Sourcing pros are skilled craftspeople.

They need to be well versed in such a wide range of topics! And when it comes to Strategic Sourcing of Marketing Services, the knowledge base is highly specialized with a host of strange nuances.

Tip #2: Recognize that the best Strategic Sourcing pros are working to help marketers and their agencies succeed.

They play a long game. They recognize that their companies’ success is dependent on these working relationships. Their job is to ensure that the commercial structure of the relationships is sound, so that marketers and agencies can focus on growing the business.

Tip #3: Agencies should keep in mind that Strategic Sourcing folks request specific information (like hourly or FTE rates) for sound reasons.

There is a near constant outcry against hourly or FTE rates and “hours” by agency folks in the trades and on social media. There is little discussion about why Sourcing requests this kind of information.

Rate and staffing information is often requested so that Strategic Sourcing can benchmark an agency’s proposal vis-à-vis market or competitive rates. Sourcing also uses the information to better understand an agency’s approach to service and staffing. Keep in mind that there is no other broadly available benchmark for them to use for such purposes.

Tip #4: Marketers and Agencies should involve Strategic Sourcing early, especially with potential problems.

For example, if an agency thinks their marketing client is abusing the approved SOW, involve your Sourcing partner. They can help troubleshoot. And do not “run hot” without a discussion with Sourcing – they often can convene the right conversations to address such an issue. Prompting the discussion early is critical as they typically can’t retroactively fix issues that impact a budget.

Tip #5: Educate each other.

Things work better if both parties are proactively keeping their partner informed about important topics. With emerging technologies and capabilities, don’t be afraid to learn together: invite your partner to key webinars, conferences or presentations that will help the relationship and each other’s knowledge. Hear about a webinar on key advancements in AI and agency services? Share it with Sourcing. Does the client have a new companywide initiative or transformation? Sourcing should share that with the agencies.

Tip #6: Agencies should develop and execute proactive engagement plans with their Strategic Sourcing partners.

The Strategic Sourcing pros on the panel noted things like:

– Agency executives rarely ask Sourcing folks how they are evaluated or compensated

– Agency executives rarely engage at all with Sourcing except when absolutely necessary (like onboarding a new client or negotiating a new SOW)

– Most agencies don’t know how their Sourcing partners prefer to engage

As the discussion unfolded it became clear that most agencies do not make a point of routinely engaging with their Strategic Sourcing counterparts.

The agency world is a bit unusual in that way. Sales organizations everywhere have key account engagement plans. The best agency client service executives focus on constant communication and information exchanges with their marketing clients.

Agencies would be well served by taking a similar approach with their Strategic Sourcing counterparts. Help them succeed, and they are more likely to help you succeed. The key is to have a plan to develop a deeper relationship so that there is trust BEFORE an issue appears.

Try these 6 tips!

1. Appreciate that the best Strategic Sourcing pros are skilled craftspeople.
2. Recognize that the best Sourcing pros are working to help marketers and their agencies succeed.
3. Agencies: keep in mind that Sourcing requests information (like rates) for sound reasons.
4. Marketers and Agencies should involve Strategic Sourcing early, especially with potential problems.
5. Educate each other.
6. Agencies should develop and execute proactive engagement plans with their Sourcing partners.