The Marketing Supply Chain Needs to Link Up - Harold Geller

In preparing to present at the East Coast quotTV of Tomorrow Showquot Event I started to contemplate the supply chain as it currently exists in the marketplace There is much good that emerges from a more efficient and productive marketing supply chain however there is a lack of understanding among Advertisers and their Agencies as to how to begin to see these benefitsIf you refer to Item 5 of The Association of National Advertisers 10 Point Marketer39s Constitutionamp160 The marketing supply chain must become more efficient and productivequotLet39s break this downWhat is a supply chain How does it function More importantly why does it function According to Wikipedia quotA supply chain is a system of organizations people technology activities information and resources involved in moving a product or service from supplier to customer Supply chain activities transform raw materials and components into a finished product that is delivered to the end customerquotThe long and short of it is that Supply Chain Excellence is what allows manufacturers to deliver to the customer The more efficiently and effectively it works the more likely it is that it will function without delay or malfunction To be clear efficiency is different than effectiveness albeit just as important Marketing efficiency enables us to shorten the supply chain reduce waste and improve productivity The principles of digital workflow throughout the marketing process when fully embraced by the marketing industry will improve the accuracy of reporting and evaluation of advertising assets affording process improvements and cost savings for everyoneThe amount of technological innovation regardless of the size of the organization which needs to exist in order to be a value supply web participant is the same Firms who are committed to a clear flow of information are more valuable and profitableUnfortunately the entire current system is based on meeting the needs of the customer without giving much regard to the efficiency Supply chain leaders need to adjust their practices The ultimate issue here is that in Marketing and Communications we see ourselves in silos and are focused on making sure that advertisers get what they want when they want it for the best possible price Although what we should be focusing on is ensuring that the process which delivers it from raw materials to consumer usage is efficient Why should we care Because there is untapped operating marginAs you can see in the visual above each user silo contains the same usage silos reinforcing interoperabilityMany of the exchanges encountered in the supply chain will therefore be between different companies that will seek to maximize their revenue within their sphere of interest but may have little or no knowledge or interest in the remaining players in the supply chain More recently the loosely coupled self organizing network of businesses that cooperates to provide product and service offerings has been called the Extended Enterprise This network of firms may operate independently for example through market mechanisms or cooperatively through businesses and contractsThere are many other interpretations of Supply Chain Management The Council of supplychain management professionals CSMP defined Supply Chain Management as quotit encompasses the planning and management of all activates involved in sourcing and procurement conversion and all logistics management activities Importantly it also includes coordination and collaboration with channel partners which can be suppliers intermediaries thirdparty service providers and customersquot In essence supply chain management integrates supply and demand management within and across companies Supply Chain Management is an integrating function with primary responsibility for linking major business functions and business processes within and across companies into a cohesive and highperformance business model It includes all of the logistics management activities noted above as well as manufacturing operations and it drives coordination of the process and activities with and across marketing sales product design finance and information technologyThis brings me to the Marketers39 Constitution Item 6 quotThe marketing ecosystem amp8211 including agencies media and suppliers amp8211 must become increasingly capablequotIn using sophisticated technology and better sourcing tools bestpractice companies are better tuned to opportunities for supply and demand In spending more time on understanding and maintaining the process costs plummet thereby increasing the percentage of revenueA multidirectional supply chain gives each member a new found appreciation understanding and value to their role in the chain Prohibiting the network from using new found value ultimately depreciates the supply chain itselfAs broadcasters and vendors there is always a fear that by identifying faults in your customer39s processes your share of the budget will be reduced By advocating the use of Supply Chain Excellence for ads throughout the supply chain and across media platforms we are suggesting that a little work early in the process could make everybody39s life a whole lot easier embracing standardization without inhibiting creativity can improve marketing accountability generate operational efficiencies reduce human error and bring value to the AdvertiserDo you want to be the weakest link I highly doubt itThe opinions and points of view expressed in this commentary are exclusively the views of the author and do not necessarily represent the views of MediaBizBloggerscom management or associated bloggers MediaBizBloggers is an open thought leadership platform and readers may share their comments and opinions in response to all commentaries

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The Marketing Supply Chain Needs to Link Up - Harold Geller

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