Marketing supply chain
The marketing supply chain is the chain of suppliers that an organization relies on to produce marketing materials (print, promotional products and point of sale) to market their products and services.
The marketing supply chain is often comprised of numerous partners inside and outside of the organization – such as brand managers, marketing services, agencies, direct sales teams, buyers, printers, fulfillment houses and many others – all interconnected through often very complex relationships with little to no measurement in efficiency.
From product brochures and promotional flyers to point-of-sale systems and store signage, each of these supplies must be acquired, managed and ultimately distributed to customers, sales teams, branch offices, retail outlets, dealers, distributors and other key audiences around the world.
Flow
Similar to manufacturing environments, marketing supply chains are primarily governed by a process or "flow" that typically involves:
- Creation – identifying and developing marketing materials to meet customer need and/or to support sales initiatives
- Production – getting materials in their final form either through sourcing, printing or Web development
- Warehousing – technology, storage strategy, planning
- Fulfillment – order management, service standards, shipping & tracking Use/Consumption – how materials are used & displayed in the field and stored based on seasonality or product/ service availability
- Feedback – collecting information for continuous refinement; from inventory reporting, management metrics, field/ customer feedback
Each of these functions requires high levels of coordination and support to ensure that they are managed effectively and also seamlessly integrated into the larger supply chain.
Over time, most supply chains can grow cumbersome and unwieldy as new partners, new products and new technologies are added, resulting in increased cost, decreased service levels and an overall loss of control. Some of the world’s largest consulting firms estimate that up to 60% of marketing costs are related to non-product ancillary areas (distribution, people, freight, storage, obsolescence, technology, inventory management, etc.).
Companies have traditionally tackled cost reduction from a "largest spend first" philosophy. As a result, some very substantial cost savings opportunities are often overlooked, such as indirect materials and supplies – those products and services that are not a core or direct part of the company’s finished product.
By taking a complete Marketing Supply Chain approach, identifying inefficiencies and developing best business practices, companies can improve their marketing supply chain process. Outsourcing the process can help manage total marketing supply chain cost, and can provide an opportunity for measurement in marketing, one of the major challenges in the profession.