At December’s X-Series event, procurement expert Tina Fegent spoke with Becky McKinlay, Managing Director at Oystercatchers, to challenge perceptions and redefine procurement’s role within brand and agency partnerships. Adam Trainis, Client Director at Oystercatchers, shares his insights from the session below.
Procurement – a term that often evokes mixed reactions across the marketing industry. A misunderstood gatekeeper? Or a strategic partner?
At the latest Oystercatchers X-Series event, we set out to answer these questions by hosting the brilliant Tina Fegent. With over three decades of experience shaping the field of marketing procurement, Tina shared her invaluable insights alongside Becky McKinlay, Managing Director at Oystercatchers.
Together, they explored the transformative potential of procurement in fostering collaboration between brands and agencies, dispelling myths and providing actionable advice along the way.
Redefining Procurement: A strategic ally, not a blocker
Procurement has sometimes been mischaracterised as a roadblock – the gatekeeper with a scorecard in hand at the end of a pitch. Tina sought to rewrite this narrative, positioning procurement as an enabler and a vital partner. At its essence, procurement is about ensuring businesses buy the right services at the right price. It spans two primary categories:
- Direct Procurement: Focused on raw materials and tangible goods.
- Indirect Procurement: Encompasses services like marketing and HR, which are inherently more complex and harder to quantify.
While direct procurement often dominates the focus of procurement’s time, marketing procurement demands a strategic, nuanced approach – one that aligns creativity with commercial realities, unlike direct procurement, comparing agency proposals is rarely an apples-to-apples exercise. This makes clarity, simplicity, and accessibility in agency presentations crucial.
The role of Procurement in the Pitch Process
The earlier procurement is involved in the pitch process, the better.
Contrary to misconceptions, procurement isn’t merely about cost-cutting; their involvement is about:
- Ensuring Fairness: Every agency is treated equitably, creating a level playing field.
- Providing Structure: They bring rigour and clarity to what can otherwise be a challenging process.
- Supporting CMOs: Many CMOs lean on procurement teams to navigate the complexities of agency selection and ensure alignment with broader business objectives.
Best Practices for Agencies: Engaging with Procurement
To transform procurement from a perceived hurdle to a collaborative ally, agencies must proactively adopt best practices.
- Engage Early: Building relationships with procurement teams from the outset fosters trust and alignment.
- Educate and Articulate: Clearly communicate your agency’s unique value proposition. Provide tangible examples of ROI, highlighting specific challenges solved and measurable outcomes.
- Understand their objectives: Procurement isn’t always about cost savings. Invest time in understanding their goals – whether it’s efficiency, innovation, or scalability.
- Simplify and support: Ensure your materials are easy to understand. Procurement professionals often juggle multiple categories; clarity can set you apart.
- Demonstrate professionalism: Match the professionalism of procurement teams in your responses, materials, and interactions.
- Highlight Cost Efficiencies: Showcase how your agency has driven savings or added value on existing accounts. Specificity here can make all the difference.
Beyond the Pitch: Building long-term relationships
Winning the pitch is just the beginning. To maintain a strong relationship with procurement teams, agencies must adopt a long-term mindset:
- Communicate strategically: Stay visible without overwhelming. Regular, value-driven updates ensure you remain top of mind.
- Immerse procurement in your world: Invite procurement teams to experience your agency’s environment first hand – whether through a client shoot or a day in your offices.
- Maintain Reputation: The marketing procurement community is small and interconnected. A reputation for being procurement-friendly can open doors to future opportunities.
The Commercial Perspective: Profitability and Partnership
A key takeaway from the session was the acknowledgment that procurement teams appreciate options in commercial approaches. Agencies should:
- Offer flexible budgeting: Avoid commercial responses that come in to the pound of the budget. Provide options that showcase creativity within financial constraints.
- Emphasise value: Focus on the balance between cost-effectiveness and exceptional results. Procurement is there to ensure the business gets the best services, not just the cheapest.
Conclusion: Elevating the industry together
By aligning marketing budgets, expectations, and goals with agency resource, procurement helps ensure that agencies can deliver their best work.
For brands and agencies, procurement’s strategic involvement can:
- Enhance collaboration by setting clear boundaries and expectations.
- Unlock innovation by ensuring budgets are allocated effectively.
- Foster long-term partnerships by building trust and alignment.
When agencies approach procurement with professionalism, empathy, and a clear value proposition, they unlock collaboration that benefits everyone.
At Oystercatchers, we’re proud to facilitate these conversations and help elevate the marketing industry by fostering better partnerships between brands, agencies, and procurement teams. A thank you to Tina Fegent for her invaluable insights and to all attendees for making this session such a success.