Source One's Budget Optimization Specialists Drive Marketing Agency Value with Sourcing Best Practices
 

Marketing Strategic Sourcing Case Study

Procurement and Strategic Sourcing Case Studies


 


Marketing & Advertising Strategic Sourcing Services

Source One’s budget optimization team provides a range of Marketing Strategic Sourcing services. We’ll identify best-fit agencies and you ensure your new strategic partnerships remain valuable in the long-term. Our efforts have helped clients optimize their budgets in a number of Marketing and Advertising spend categories including:

 


Source One’s Approach to Marketing Strategic Sourcing

  • Leverage in-house knowledge to identify, qualify, and obtain Marketing requirements.

Source One’s budget optimization team will carry out a Marketing agency search informed by your organization’s current needs and future goals. Through our years of communication with world-class Marketing agencies, we’ve built valuable relationships and gained visibility into the marketplace. These help us serve your organization, optimize its Marketing budget, and provide for a world-class partnership with your Marketing partners.

  • Establish full transparency.

Our Strategic Sourcing specialists are familiar with the nature and structure of Marketing agency networks. This knowledge helps us to oversee negotiations and establish agreements that deliver full transparency to all parties. Additionally, our knowledge of contracting standards for Marketing helps us optimize agency feeds and staffing plans.

  • Simplify the selection process.

We take the burden of agency selection and evaluation of your Procurement team’s back. We’ll carry out full Strategic Sourcing initiatives that cover everything from conflict of interest screenings to on-boarding your new Marketing agency.


Procurement Transformation Advisory Services

Many of Source One’s clients refine their approach to Marketing spend as part of a broader Procurement Transformation initiative. The experts at Source One have the Procurement experience and expertise to help our clients optimize their spend in all categories and refine their approach to every aspect of Procurement’s operations.

Optimizing Procurement


Marketing Agency Audit Services

Compliance, collaboration, and consistency are everything when it comes to maintaining a relationship with your Marketing agency. This relationship doesn’t just impact individual Marketing campaigns, but affects your organization’s brand identity as a whole. Start optimizing your agency relationship with an audit from Source One’s Marketing experts. We’ll identify inefficiencies and lay the groundwork for developing a more strategic agency relationship.

Marketing Agency Audits

Source One's Strategic Sourcing Team Optimizes Marketing Spend and Improves Client-Agency Relationships

Strategic Sourcing for Marketing Budget Optimization

Source One’s budget optimization engagement with a Financial Services company provides a case study in the effectiveness of our approach to Marketing Strategic Sourcing. 

Source One’s Strategic Sourcing experts specialize in bridging the gap that often exists between Procurement and Marketing teams. We not only empower clients to optimize their Marketing budgets and develop optimal relationships with their agencies, but also provide for a more collaborative, productive relationship between Procurement and Marketing moving forward.

The following Marketing Strategic Sourcing case study is just one example of our successful engagements in the category.

The Challenge:

Following an acquisition, a Financial Services company launched a budget optimization initiative across numerous spend categories. With an annual budget of $45M, Marketing quickly became a priority. Historically, the company had devoted most of its Marketing budget to a single agency. Extending the organization’s internal Marketing resources, this agency provided strategic support and a variety of digital and production services.

Though the Marketing agency was recognized as a valuable strategic partner, the organization had not revisited its existing contract for several years. The agency’s quality and service levels were considered satisfactory, but the relationship was far from perfect, citing a lack of:

  • Visibility into the Marketing agency’s compensation structure including management fees and production costs.
  • Understanding of how the Marketing agency compared to the competition. They feared this lack of visibility might lead them to miss out on budget optimization opportunities.

 

The Financial Services company reached out to Source One’s Marketing Strategic Sourcing team for support in optimizing its Marketing budget, improving transparency in its existing agency relationship, and developing a repository of market intelligence and category expertise.

The Solution:

Source One kicked off the engagement with a series of data collection efforts including a thorough spend analysis to gain a better understanding of the category’s scope and pricing structures.

  • Our Marketing Strategic Sourcing team leveraged our spend analytics and opportunity assessment tool, SpendConsultant.com, to review quantitative material for the Marketing category. The efforts revealed that many Marketing invoices and projects failed to provide a detailed pricing breakdown. This meant the Financial Services company lacked visibility into how their Marketing agency charged them for its services.
  • Next, our Marketing consultants conducted a series of interviews with internal stakeholders. These provided additional insights into the company’s relationship with their Marketing agency as well as a sense of the organization’s needs, goals, and pain points in the category.

 

By directly engaging the client’s Marketing’s stakeholder Source One gain buy-in from leaders within the organization. To solidify organization-wide support, Source One’s Marketing experts delivered a business case presentation to share their findings and sourcing recommendations. Together, Source One and the client agreed that a phased budget optimization initiative would prove most effective.

  • Source One’s Marketing Strategic Sourcing team administered a blind RFP to a select group of Marketing agencies. The process provided the Financial Services client an opportunity to compare their incumbent’s pricing and service models with industry standards.
  • Next, Source One leveraged the RFP results and Marketing category intelligence to develop a a negotiations guide. Outlining Marketing agency capabilities and pricing structures, it provided the client with valuable strategies for the next stage of the sourcing engagement.

 

Source One’s Marketing Sourcing team recognized the strategic nature of the Financial Services company’s current agency relationship. Leveraging our findings and market intelligence, we oversaw the negotiations process.

  • Source One’s Marketing specialists facilitated discussions between the client’s executive team and their Marketing agency’s account managers.
  • Throughout the dialogue, Source One enabled both parties to reset expectations and agree on better standards for Marketing project cost breakdowns, pricing structures, and service levels.

 

The Results:

Together, Source One’s Marketing team and the Financial Services company worked to address the pricing issues and inefficiencies in the latter’s relationship with their Marketing agency. After several rounds of negotiations, Source One helped secure more than $3M in savings. Additionally, their efforts established a new contract including numerous stipulations to improve visibility and accountability.

  • The new contract established a competitive hourly rate for Marketing agency compensation and a monthly retainer fee tied to a pool of hours. These hours could apply to any Marketing services required.
  • It also insisted on reporting that would provide hourly breakdowns of Marketing services to better control the scope and costs of Marketing projects.
  • Quarterly reviews would also help the client assess the scope of its Marketing projects and evaluate the agency’s performance.
  • Finally, the new contract included a clear sourcing policy for the Marketing agency to adhere to when engaging third-party support.

 

Prior to engaging Source One, the Financial Services company paid Marketing agency fees and production rates that were well above the market average. With support from Source One’s Marketing Strategic Sourcing team, they quickly reversed years of inefficiency and realized hard dollar cost savings. What’s more, the insights provided by Source One’s team will help them maintain a more effective agency relationship and make more informed sourcing decisions well into the future.

Reach out to the Marketing Budget Optimization TEAM

 

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