Befriend Procurement: Navigating the Decoupling Trend in Creative Services

In today’s ever-changing landscape of creative services, I’m witnessing a significant shift in how brands collaborate with agencies. More and more, brands are decoupling production from creative and strategic services. As a lead director and producer at Blend, a creative production agency in Los Angeles, this trend is particularly relevant to me. The shift is primarily driven by procurement departments, which are increasingly focused on optimizing costs by selectively engaging with specific parts of the value chain.

The Role of Procurement in Decoupling

Procurement teams are becoming the gatekeepers of cost-efficiency within organizations. Traditionally, brands relied on a single agency to handle everything from creative strategy to production. However, as businesses aim to streamline operations, procurement has realized that the full-service model often means paying for services that aren’t always needed.

As I’ve seen firsthand, “Brands are increasingly decoupling production from creative and strategic services. Procurement is driving the process as they don’t want to bear the costs of the whole value chain when they only need part of the value chain.” This approach allows procurement teams to engage with creative agencies in Los Angeles like ours for the specific services essential to a campaign or project, maintaining high-quality production standards while controlling costs.

Why Befriending Procurement Matters

For us at Blend, understanding and adapting to this trend is crucial. Building strong relationships with procurement can position our agency as a preferred partner when these teams are sourcing specific creative services.

Key Benefits of Befriending Procurement:

  • Cost Efficiency: Procurement teams are focused on finding the best value. By aligning our services with their cost-saving goals, we can become an indispensable resource.
  • Specialization: By offering specialized services rather than a full-service package, we can stand out as a go-to provider for specific needs.
  • Trust and Transparency: Procurement values partners who are transparent about pricing and deliverables. Establishing trust can lead to long-term, repeat business.

Decoupling in Action: A Case Study

Imagine a global brand based in Los Angeles needs a series of high-impact video ads. Instead of engaging a single agency for strategy, creative development, and production, the procurement team might choose to work with a creative agency Los Angeles like ours for the concept and script and then hire a separate production house for the filming and editing. This decoupling allows the brand to leverage top talent in each area without paying for unnecessary services.

How Creative Agencies Can Adapt

To thrive in this decoupling environment, we at Blend need to:

  • Offer Specialized Services: Focus on areas where we excel, such as motion and still content production, and market these strengths to procurement teams.
  • Be Flexible: Be open to collaborating with other agencies or production houses. This flexibility can position us as a valuable component of a larger campaign.
  • Highlight Value: Clearly articulate the value we provide in our specialized area and how this contributes to the overall success of the campaign.

Embracing the Shift

As the trend of decoupling production from creative and strategic services continues to grow, I see that the role of procurement in this process is crucial. For us at Blend, building strong relationships with procurement teams and adapting to this new landscape can open up new opportunities for growth and success. By focusing on specialization, transparency, and flexibility, we can thrive in an increasingly competitive market.

For more insights on decoupling in value chains, you can refer to this article from FourWeekMBA.