Below you will find a diagram explaining the level of impact the different Sourcing Strategies we have identified can have on your existing production processes.
The Standard production model is where Agencies take sole responsibility to co-ordinate, manage and control production on behalf of their Client. Reporting is always via the Agency. The Production partner could be linked to the Agency in some way/part of the same holding group; a wholly owned subsidiary, or it could just be a long standing, established relationship. In this case there is usually no relationship between the Production Partner and the Client.
Devolved production sourcing is where the Client organisation (nearly always with their agency partner/s) surveys the marketplace; selects the production supplier(s) and secures the production services. The contracting, control, payment and management lies jointly with the Agency(s) and Client. Production reporting could be via the Agency partner or direct.
Sourcing production Direct is where a Client organisation surveys the market place (with or without their Agency partners), selects the production supplier(s) and secures their services directly. The contracting, control, payment, risk and management lies solely with the Client, even though they work to the Agency’s day to day instruction. Reporting usually direct to Client.
The Devolved and Direct models present the biggest challenges and require a higher level of stakeholder engagement and support. ISBA asked the steering group of advertisers to provide some insights into the key drivers behind choosing to opt for either of these models. Below you will find Common Outcomes the Steering group felt clients seek to achieve from either a Devolved or Direct Model:
- Driving efficiencies
- Efficiency of delivery
- Budgetary efficiency
- Time efficiency
- Single point of Accountability
- Total delivered cost of integrated campaign – avoidance of duplication
- Bigger bang for your buck
- Greater control of overall spend
Many advertisers employ a Production Cost Consultant to help them investigate and/or manage the production costs on individual projects, we list cost consultants recommended by other ISBA members within the Suppliers and Consultants section.
After considering these options, should you decide to de-couple and move to either a Devolved or Direct model there are various watchouts and considerations you should be aware of. We asked the same steering group to share some key learnings and gained some fantastic insight into the things they had wished they knew before they started! The insights have grouped into five main areas in a document called Things to Watch Out For which can be accessed via the documents tab above.
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