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TrinityP3 Strategic Marketing Supplier Alignment Process
As marketing becomes more complex and diversified, driven by technology, marketers are finding themselves managing increasingly larger and more complex agency and supplier rosters. The traditional procurement approach of developing supplier panels based on capabilities and services no longer works in this complex environment. This presentation provides a strategic process for developing a roster of suppliers aligned to the marketing strategy which delivers alignment of the suppliers to that strategy.
TrinityP3 Strategic Marketing Supplier Alignment Process
Strategic Supplier AlignmentA process for optimising agency rosters TrinityP3 September, 2011 CONFIDENTIAL DRAFT – COMMERCIAL IN CONFIDENCE 1 marketing management consultants
An increasingly complex environment • Multiple channels • Multiple disciplines • Multiple brands • Multiple stakeholders • Multiple suppliers • What is the optimal Structure? Process? Mix? 2 marketing management consultants
How do you manage this growing complexity? Advertising/Creative Direct Marketing: Signage, Print Design Brand Consultancy Strategy Consultancy Electronic / Video Production Strategy Consultancy (B2B B2C) Data Analytics Channel Planning Media Analysis Connection Planning Retail Specialist Database Design Custom Publishing Media Planning Database Management Email MarketingMedia Buying Direct Response Management Experiential Marketing Media Strategy List Creation Sourcing Event MarketingChannel Planning Promotions and Premiums Mobile Digital Media Planning Media Relations Point of Sale Optimization Internal Communications Shopper MarketingDigital/Interactive Marketing Speechwriting Social Marketing Web Development Corporate Social Responsibility Sports Marketing Search Strategic Counsel Sponsorship Digital Creative Crisis and Issue Management TelemarketingSocial media Graphic Design Word of Mouth Apps development Package Design Concept TestingPlatform development Branding and Identity Brand Tracking 3 marketing management consultants
Complexity creates a complex problem • This increased complexity leads to: • Multiple service providers • Wasteful duplication of services • Increased time spent managing suppliers • Confusion on roles and responsibilities • Difficulty in maintaining brand consistency • Inefficient use of resources internally and externally• Traditional procurement approach is to collect these into panels based on capabilities.• BUT there is a more effective, efficient and sustainable approach. 4 marketing management consultants
A strategic approach to supplier rosters • Not all suppliers are created strategically equal.• The requirements of each brand / category / segment will mean that some are more Tier 1: strategically important than others. Strategic Partners• Think of it in three levels or tiers: • Strategic Partners – those suppliers that influence the development of marketing or Tier 2: communication strategy. Specialist Service Providers • Specialist Service Providers – those specialists essential for strategy in their particular field. • General Service Providers – Tier 3: those suppliers of often commodity General Service Providers services. 5 marketing management consultants
Strategic Supplier Alignment • The Strategic Supplier Alignment approach allows you to arrange and manage your suppliers in a more strategic manner: • Tier 1: Strategic Partners Usually no more than three, work to common objectives based on strategic measures with significant profit / bonus structure. • Tier 2: Specialist Service Providers Usually no more than 12 for any one brand / category / segment, with bonus based on performance in their category of expertise. • Tier 3: General Service Providers Unlimited in number and selected on cost efficiency and value with no bonus opportunity. 6 marketing management consultants
How to achieve strategic alignment • There are four steps to achieving Strategic Alignment: • Define the current state and future requirements – through spend analysis, interviews, performance assessment and structural review. • Identify issues and opportunities within the current state – look for gaps and duplication, underperformance and shortfalls against future requirements. • Develop future state – arrange supplier tiers, by brand / category / segment and overall to address the issues and opportunities identified in Step 2. • Implementation plan – identify the changes required between current and future state to develop the implementation plan. 7 marketing management consultants
Essential requirements for successful alignment • Our experience has found that the beyond the structure, performance improvement requires the following: • Alignment in performance objectives for Tier 1 Strategic Partners, (Remuneration Modelling* PBR*). • Clear articulation of roles and responsibilities and expectations, especially in Tier 1 2, (Contract Development* Engagement Agreement*). • Regular monitoring of collaboration and relationship performance between Marketing and Tier 1 Strategic Partners and Tier 2 Specialist Service Providers, (Evalu8ing*). * These are TrinityP3 services 8 marketing management consultants
Beneﬁts of Strategic Supplier Alignment TrinityP3’s Strategic Supplier Alignment:• Provides a supplier structure aligned to the marketing strategy.• Has a high level of support and integrity from marketing as built to their needs.• Delivers savings through reduction of duplication, minimising waste and economies of scale.• Maximises the outputs of the agencies by aligning and focusing expectations and outputs.• Minimises conflicts with clear roles and responsibilities within the structure.• Provides the basis for future model changes to changing needs. 9 marketing management consultants
Strategic Supplier Summary • Marketing is becoming more and more complex, managing more channels and more suppliers. pr agency• Traditional Procurement approaches to roster management such as supplier panels no longer achieve efficiency. digital agency• Strategic Supplier Alignment builds client a supplier roster structure based on the current and future strategic requirements for the brand / category / segment. media• Alignment is achieved through agency creative contract structure, remuneration / agency compensation models and regularly direct monitoring collaboration and agency performance. 10 marketing management consultants
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