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News: US & UK businesses face procurement problems

Fifty-one per cent of American and 89 per cent British large businesses agree there are better service providers, including marketing agencies, than their current partners, according to surveys by blur Group.

The 2014 survey of US businesses revealed 46 per cent believe their companies engage with the same partners longer than they should.

Sixty-five per cent of those surveyed admitted long-term relationships with agencies resulted in fewer creative solutions; however, they still maintain their contracts with current services providers for up to 10.5 years. US brands said they stayed in this partnerships because of ‘outside factors’ that impact 43 per cent of decision makers, like preferred supplier lists and “personal ties”.

The UK survey, published in late 2013, revealed that an astonishing 93 per cent of UK business would like to find new services providers with new and innovative approaches. However, three quarters admitted that ‘peer group pressure’ within their organisations prevented them from working with providers outside existing networks.

Philip Letts, blur Group’s CEO, commented on the research: “Right now US businesses must certainly feel like they’re trapped in an unhappy marriage with their service providers. The decline in creativity could be due to the trouble they have finding the most relevant providers for their needs.”