Shorter, consumption based contracts build better relationships between customers and suppliers, says DPP

The DPP has today published a new report exploring the commercial relationships needed for media businesses of the future. Commercial relationships: embedding value is the final report in its Design for Tomorrow series. It is the product of discussions conducted with over forty senior executives from across the media supply chain, and enabled by DPP member companies BT and Red Bee Media.

‘The DPP is well placed to undertake groundbreaking projects such as this,’ says DPP CEO and author of the report, Mark Harrison. ‘We are uniquely able to bring together executives from both the customer and supplier community to talk openly about what works, and what doesn’t, in the way they do business. The outcome is eye-opening, and important.’

The report reveals that both customers and suppliers feel the way the media industry has done business in the past is no longer fit for purpose. The speed at which technology is now evolving, together with the sudden changes in market trends and conditions, mean that both parties need commercial agreements that are more agile.

Commercial relationships: embedding value explores how this agility can be achieved. Among its key findings are:

• Greater trust is built through shorter contracts
• Procurement has to be embedded in the business units it serves
• Modular architecture and consumption based models enable supply chain flexibility

‘We found that forward looking customers and suppliers are all prepared to exchange long-term arrangements for less secure but better adapted commercial models,’ adds Harrison. ‘There was a real energy to the engagement.’

A DPP webcast on 26 November will explore the findings of the report in more detail. It will also mark the completion of the DPP’s Design for Tomorrow series, which has seen six reports and webcasts created from in-depth research involving almost 250 experts, and 140 companies.

The DPP will announce its next major projects in December, following the DPP Tech Leaders’ Briefing, an annual business intelligence event which takes place online this year 16-19 November.