Decoupling Creative and Production Procurement – Handle with Care!

It's strange when you think about it, how fashions in aggregating or dis-aggregating spend change not only over time but also in different spend categories. So whilst we find in one category - facilities management perhaps - the general move is towards bringing together different sub-categories to form a "total facilities management" package, in another we find buyers busily splitting up spend and buying at a more granular level.

We discuss this in our new briefing paper, "Decoupling Creative and Production Procurement – Handle with Care!" It is sponsored by ProProcure, the Marketing Spend Management solutions provider, and we look at this issue in the context of one particular area, that of marketing services. We consider the idea of ‘de-coupling’ spend – the separation of different elements within the marketing process in terms of commercial management. The most commonly seen examples of this have probably been in the context of looking to split the procurement of creative and production activities.

We're certainly not saying that this is never an appropriate strategy. But it carries some real risks, such as a loss of brand consistency or focus. It's essential that if different suppliers are ultimately working towards a common goal, their objectives, measurement metrics and approaches need to be carefully aligned.

The message in the paper therefore is that we should never automatically assume that de-coupling, dis-aggregation or indeed any other particular approach is always correct in any spend category. Marketing and procurement executives need to consider instead some key principles - core aspects and drivers that deliver value from third-party spend. They include principles such as transparency and competition, as well as enablers such as effective processes, quality, speed to market, brand consistency, technology and data, which can all support both effective procurement and successful brand management.

For a deeper insight you can download the whole paper, free of charge here.

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