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http://trinityp3.com/ 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.
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Strategic Supplier Alignment��� A process for optimising agency rosters
TrinityP3 September, 2011
CONFIDENTIAL DRAFT – COMMERCIAL IN CONFIDENCE
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An increasingly complex environment
• Multiple channels
• Multiple disciplines
• Multiple brands
• Multiple stakeholders
• Multiple suppliers
• What is the optimal Structure? Process? Mix?
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How do you manage this growing complexity? Direct Marketing:
Strategy Consultancy (B2B & B2C)
Media Analysis Database Design
Database Management Direct Response Management
List Creation & Sourcing Promotions and Premiums
Media Relations Internal Communications
Speechwriting Corporate Social Responsibility
Strategic Counsel Crisis and Issue Management
Graphic Design Package Design
Branding and Identity
Advertising/Creative Brand Consultancy
Strategy Consultancy Channel Planning
Retail Specialist Media Planning
Media Buying Media Strategy
Channel Planning Digital Media Planning
& Optimization Digital/Interactive Marketing
Web Development Search
Digital Creative Social media
Apps development Platform development
Signage, Print Design Electronic / Video Production
Data Analytics Connection Planning
Custom Publishing Email Marketing
Experiential Marketing Event Marketing
Mobile Point of Sale
Shopper Marketing Social Marketing
Sports Marketing Sponsorship
Telemarketing Word of Mouth
Concept Testing Brand Tracking
•
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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.
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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 strategically important than others.
• Think of it in three levels or tiers: • Strategic Partners – those suppliers that
influence the development of marketing or communication strategy.
• Specialist Service Providers – those specialists essential for strategy in their particular field.
• General Service Providers – those suppliers of often commodity services.
Tier 1: Strategic Partners
Tier 2: Specialist Service
Providers
Tier 3: General Service Providers
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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.
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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.
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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
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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.
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Strategic Supplier Summary • Marketing is becoming more and
more complex, managing more channels and more suppliers.
• Traditional Procurement approaches to roster management such as supplier panels no longer achieve efficiency.
• Strategic Supplier Alignment builds a supplier roster structure based on the current and future strategic requirements for the brand / category / segment.
• Alignment is achieved through contract structure, remuneration / compensation models and regularly monitoring collaboration and performance.
client
mediaagency
directagency
creativeagency
pragency
digitalagency
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For more information please contact TrinityP3 Pty Ltd
London +44 7880 910 064
Sydney +612 8399 0922
Melbourne +613 9682 6800
New Zealand +64 4 801 6644
Hong Kong +852 3589 3095
Singapore +65 6884 9149
[email protected] www.trinityp3.com
TrinityP3’s liability is limited as per our standard Terms and Conditions as approved by the client prior to the project commencing.
The Client acknowledges and agrees that, unless this report expressly provides otherwise, all “Intellectual Property” (defined below) used in, or in connection with, this report is owned by the Contractor. Intellectual Property means any intellectual rights, including moral rights, whether registered or not, whether arising now or in the future, on any legal basis. This includes rights in relation to copyright, patents, inventions, trademark, design, trade secrets, goodwill, reputation and confidential information. Except where expressly provided otherwise in this report, the Client must obtain a licence from the Contractor in order to use, reproduce, adapt, modify or communicate the Intellectual Property. The Contractor will grant a world-wide, royalty free, non-exclusive licence to the Client, for the period specified in the Contract Details, where the Contractor believes the Client’s use of the Intellectual Property is necessary to allow the Client to receive the full benefit of the Services (including the Contract Material) in accordance with the provision of this report.
