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One recurrent theme is emerging as an example of profligate waste because of corporates’ efforts to be seen to be saving money.
Clients put work out to tender so they can achieve competitive rates, meet their internal procurement requirements and encourage agencies to demonstrate that they understand the client and its objectives. F air enough.
However, as things are now, this regularly places agencies, DMCs, bureaux, venues, hotels and others in daft and costly situations. In one case, 12 organisations were asked to pitch for the same piece of work. So 12 agencies and DMCs all chased the same venues, convention bureaux and suppliers. In turn, they had to create individual responses to 12 slightly different briefs because the customer has specified non-disclosure.
The result? A wasteful, low margin-producing exercise that gave little opportunity to add value, severely tested relationships and left every supplier in the chain frustrated.
Okay, so 12 tenders may be extreme, but six is not unusual. What do corporate buyers actually believe they gain through this? Have they figured out who pays for it in the long term? Perhaps neither question is genuinely important to them.
Maybe, more agencies should be saying ‘No’ to pitch lists of five, six or more, and, for pitches of this size, the buyer should be required to suspend non-disclosure.
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