Why you need to review your Marketing supply chain now (and 10 steps to strengthen it)

COVID-19 has exposed serious supply chain flaws, forcing marketers to reexamine previously unchallenged vendor relationships and processes in their ecosystem. These past months, project owners have experienced delivery delays, over-charging and faulty products, which have adversely impacted operations, client relationships and overall business risk. 

Marketers have come to realise, through the pandemic, that their supply chains are suffering from a lack of governance, an over-reliance on risky suppliers - some with questionable trade practices - and inadequate sourcing protocols. As business ramps up again, now may be a better time than ever to take stock of your marketing vendor chain, rethink your supplier strategy and navigate a robust pathway out of this global maelstrom. 

So, where do you start? Here’s a step-by-step process to support and strengthen your marketing supply chain: 

1) Conduct a formal review

• Review supplier spend across all marketing categories and channels
• Understand all quality issues and their root causes
• Review contracts, especially service levels and KPIs
• Meet with major suppliers. How have they performed? What value are they delivering? 

2) Evaluate any new consumer and client patterns, priorities and trends arising from COVID-19

• Consider new programs that strengthen engagement with all stakeholders
• Are there new sustainability trends emerging? 
• What innovations can you deploy? 

3) Understand new regulations and stay updated on any changes and their expected business impact

4) Identity risks and develop mitigation plans 

• How do you onboard and manage supplier performance? 
• How is your risk shared across your supply chain? 
• What governance is in place to monitor and hold everyone accountable? 

5) Update marketing plans that factor in current changes and future implications on markets and suppliers, operations & supply chain distribution  

• Consider your priority markets and work streams 

6) Revise budgets and set new objectives

• Are there new savings targets?  
• What other business targets are priority? 

7) Strength test your current supply chain model  

• Was was steadfast in the face of COVID-19? Where were the weaknesses?
• Are there lower risk, simpler models available? 
• Is it time for an alternative model such as a managed solution?  

8) Consider testing the market or renegotiating commercials 

9) Subject to above, update your supplier commercial terms and contracts 

10) Roll out and communicate any changes to your stakeholder community, particularly where new initiatives are launched or change management is required

Of course the above steps are very much an abridged version of any supplier review process - more detailed steps need to be considered depending upon your company size, complexity, industry and market situation. If you require any advice or ongoing support with this process, please do not hesitate to reach out to me. 

About Me

I have over two decades of experience in leadership, marketing services, global sourcing and business development.  I help marketing and procurement executives implement transformational procurement programmes that drive efficiencies and enhance effectiveness on a regional and global scale.  

Opinion Disclaimer

The views and opinions expressed in this Linkedin article (implied or otherwise) are my own.