Anke Nel, Head of Media at RAPT Creative, delves into why preferred suppliers in agencies is not only a recipe for boredom but also a potential disaster for innovation, quality and client satisfaction.
Imagine this: you’re at an all-you-can-eat buffet. You’ve paid good money to enjoy the variety of dishes, but instead of sampling everything, you’re told you can only eat shiitake mushrooms. Every. Single. Time. Welcome to the world of preferred suppliers in agencies.
Preferred supplier relationships are like monogamous relationships, but with fewer romantic dinners and more awkward power dynamics. The idea is simple: stick to one supplier because they’re reliable, familiar, and won’t give you any surprises. Sounds great, right? But what happens when that supplier’s best days are behind them? It’s like being stuck in a loveless marriage where the only thing you share is a disdain for each other’s cooking.
When agencies limit themselves to preferred suppliers, they effectively put a straitjacket on creativity and innovation. The Shiitake Effect means that by sticking to a single supplier, agencies miss out on the unique flavours and cutting-edge ideas that other vendors might bring to the table.
Comfort zones are nice; they’re warm, familiar and safe. But nothing ever grows there. Agencies sticking to preferred suppliers are essentially saying, ‘We’re happy here, no need for new ideas or improvements’. This complacency can lead to stagnation. Remember Blockbuster? They were quite comfortable with their preferred supplier of VHS tapes, right up until Netflix came along.
Sticking with preferred suppliers can also hurt the bottom line. Without the pressure of competition, suppliers have little incentive to offer competitive pricing. It’s like being a regular at a fancy restaurant where you always order the same steak. Over time, you might not notice that the price has gone up, and the portion size has gone down. Meanwhile, the diner down the street is offering a steak twice as good for half the price. One supplier means putting all your eggs in one basket. If something goes wrong, you’re out of luck.
Imagine having a single plumber for your entire apartment complex. When he’s good, he’s great. But when he decides to take an impromptu vacation to Cancun, you’re knee-deep in flooded basements. Diversifying suppliers ensures that if one fails, others can step in to save the day.
At the end of the day, agencies exist to serve their clients. And clients, much like diners at that all-you-can-eat buffet, crave variety, quality and innovation. Sticking to preferred suppliers can make agencies seem predictable and uninspired. It’s like offering your dinner guests a meal of plain shiitake mushrooms every single night. They might not say anything at first, but eventually, they’ll start making excuses to eat elsewhere.
So, the next time you’re at that buffet of vendors, remember: life’s too short for just shiitake mushrooms. Your clients will thank you, and your agency will thrive.
RAPT CREATIVE
https://raptcreative.com/
