Bob
Thomas, CME | Exhibit and Event Management I Do? I Do !
It takes a real leap of faith to outsource part of your job, but choose your partner carefully and you'll both prosper.
Outsourcing is like a marriage. You have to select your supplier as carefully as you would a spouse and watch your checkbook to be sure there are no surprises. But once you settle into this new relationship and both parties know what is expected of them, more freedom and comfort are given to both parties.
I've been on both sides of this relationship during the past 15 years so I know that letting someone else take care of the mundane, the logistics, and the minutia of trade show management is both a relief and a growing experience, once you take the plunge. But many of us were reluctant to take that first step. We wondered: Am I making myself expendable? Will they still need me once they see I can be replaced by a purchase order? What if the contractor can do this better than I? But these fears are unfounded - outsourcing allows you more time to focus on the strategic planning and not just logistics.
Exhibit managers around the world outsource different portions of their trade show marketing responsibilities. Most outsource transportation, graphic production, furniture rental, carpet rental, and I&D (installation and dismantling). Many others outsource storage, maintenance, shipping, and receipt of their property, while some outsource everything but staffing. It's no surprise that final design approval, theme development, and budget control typically remain in house.
To learn more about the outsourcing relationship from different points of view, the editors of Trade Show Ideas (TSI) facilitated a dialogue between several TSEA members Greg Ward, Laura Munson, and myself. Laura, a trade show specialist for Convergys Corp., handles shows for this Orlando-based company and has outsourcing relationships with numerous vendors. In addition, she previously worked for a Canadian technology company that did virtually no outsourcing. Greg Ward represents the outsourcer; as Sales Manager for the Ohio-based Downing Displays, he provides a various services to an array of clients.
Following are excerpts from what turned out to be a fascinating discussion on the subject of outsourcing. - Bob Thomas, CME Bob Thomas: Laura - tell us about outsourcing from the two companies where you've worked.
Laura Munson: My former and current employer are totally different companies from the outsourcing perspective. Convergys (my current employer) outsources graphics, booth design, audio visual, and labor. My former company outsourced nothing.
My former employer wanted to keep everything in-house to control costs. However, in the long run, we lost out because it took longer to get things done internally. Conflicting projects and a lack of staff dedication to trade show projects hurt us constantly. But management only saw the bottom line, not our frustration or time on project.
Bob Thomas: When you outsource, you can select a specialist that not only knows their job but knows the trade show business. How do you find reputable suppliers?
Laura Munson: The reputable suppliers I find come from word of mouth. The TSEA Membership Directory is another great resource for finding a supplier or a referral.
Greg Ward: Laura , are you outsourcing just your graphic production or do you have an in-house designers?
Laura Munson: It's a combination. While we have in-house designer staff, the history with our printing and graphic supplier is invaluable. They know our images and style and have all our images from past jobs. After deciding on themes and text, we call them and say take picture A, put it on background B and send it back to us.
Bob Thomas: Greg, I'm sure you outsource as well, what are you comfortable outsourcing?
Greg Ward: We outsource I&D because we manage entire exhibit programs and must have reliable labor in every event city. We stick with reliable firms that fix show floor problems due to that ongoing relationship. We maintain relationships with several suppliers so that we have the best talent in every exhibition city. It's about service, not just cost.
Laura Munson: All the experienced Exhibit Managers outsource their I&D - and typically to EAC (exhibitor appointed contractor) firms. At Convergys, we've settled on one company because we've found they have great people wherever we go. We have a few lead men that we can request for our larger setups - continuity and experience are invaluable.
Bob Thomas: When you outsource, do you try to select one company?
Laura Munson: We tend to go with a specialist in each field. One exhibit house stores our graphics, another our large booths. We have a local company that manages pop-ups, and another for signs and printing. I feel that I know their strengths and will evaluate existing suppliers before going elsewhere.
Bob Thomas: I know some Exhibit Managers like to outsource through one supplier to maintain one point of contact or due to restrictive accounting practices.
Bob Thomas: An important issue regarding outsourcing is understanding the service you're getting and what it will cost. Markups and fees can ruin a relationship if they're not known up front.
Laura Munson: Right, seeing a freight cost on your invoice and not knowing if there was a mark-up fee is disturbing. As long as everybody understands from the start what's going on, it's a clean relationship.
TSI: Is there any portion of your job that you just would never outsource? Are there certain things over which you want control?
Laura Munson: I don't see us ever outsourcing any of the internal planning or approval for the design of a booth. We would never give up that authority over planning details.
At my last company, they would never have outsourced audio-visual equipment and set up. Now it's a joy when I go to a show to know I don't have to figure out how to hook up all the speakers and the computers and monitors and test them all, because there's a guy there who loves doing that.
TSI: How does one go about showing that outsourcing a particular function makes sense economically?
Laura Munson: Oh, good question! I would focus on the expertise of the supplier and the quality of their equipment and the error-free service we've received. At my old company, we kept graphics in-house but the designers did not know trade shows and were busy with other projects. I didn't get good service or the industry knowledge that I can find outside.
Bob Thomas: So you're buying trade show knowledge along with that expertise when you go to the right people. You don't have to start from square one.
Laura Munson: We're buying experts in that field with trade show knowledge or expertise.
Bob Thomas: It is easier to get somebody to work for you on the outside than inside. On the inside, you're dealing with coworkers and they don't feel your sense of urgency. On the outside, they work for YOU!
Greg Ward: We've found that intangibles like time to do things that are important to your core business are good justification. We allow exhibit managers to focus on the strategic instead of the tactical issues. It takes a burden off if they don't have to worry about the details of shipping, delivery, and service orders. People are more willing to outsource the tactical side so they can concentrate on the strategic side of their business.
Laura Munson: Absolutely - plenty of late night hours were wasted trying to fix electronics. What would take an AV pro a few minutes took three marketing people hours to get it all working because we didn't have a clue.
TSI: Do you have any thoughts about new or continuing trends in outsourcing?
Laura Munsen: Companies are cutting costs and can't hire more staff but want a better and better image and presence. So I think outsourcing will continue, with suppliers becoming more specialized.
Bob Thomas: Everyone's having to do more with less, and people like Laura have to outsource because there aren't enough hours in the day. And after 9/11, our priorities have shifted to family and personal time.
Greg Ward: There are more and more companies outsourcing. We pick up a new company or two every month that become a full service client. We're growing because outsourcing works best when the supplier understands your business. You want your relationship to be so good that you don't feel like you're working with somebody that's not an employee of your company.
Laura Munson: Exactly.
Greg Ward: A common problem is that exhibit managers feel they need job security. We spend a lot of time trying to explain to them that we're not trying to take their job away from them, we're just enhancing it.
Laura Munson: Right - a lot depends on how many shows they manage. For instance, at my previous employer I had over 60 shows - that person is going to be more open-minded to outsourcing than the person managing only 10 shows.
Bob Thomas: You always need someone to oversee the relationship. Some forget that exhibit managers have to manage the supplier and interface with upper management. This is the higher level or strategic focus Greg mentioned . So outsourcing is a dance, a marriage, a partnership that you must consider carefully but that is not that great a leap. But like any relationship, it needs care and feeding and plenty of attention if you want it to thrive.
Bob Thomas, CME is Founder and President of Exhibit and Event Management - an exhibit management and consulting company based in Columbus Ohio . He is also Past Chairman of the Board of Directors for the Trade Show Exhibitors Association and has been managing trade show and marketing exhibits for more than 15 years.
Bob Thomas, CME Exhibit and Event Management 3227 Mountview Road Columbus OH 43221 614.538.9004 614.538.9019 fax www.exhibitmanagement.com |