When the marketing department decide they want to run some form of promotion, such as a special discount or exclusive offer, it is not often something the supply chain management team get asked to input on.
However, there is a need for more input from the procurement and supply chain department in organisations when it comes to marketing, in particular offering new promotions and discounts. This offering from the marketing department is in fact impacted by the supply chain and the work of the supply department becomes a vital player in making the campaign a success.
How Does Supply Chain Management Impact Marketing Success?
Although it isn’t commonly considered when forming marketing campaigns, supply chain management requirements also play their part in forming a successful promotional campaign. Order fulfilment and distribution for example, could impact how the campaign rolls out.
For example, if the stock were to run out and further distribution was not immediately on the cards, it would be likely to have a negative impact on the brand image as well as the company losing sales and leaving a number of unhappy customers/retailers in its wake. In worse cases, it could cause legal complications and impact licensor agreements.
What Needs To Change For Marketing and Supply Chain Management Teams?
If these risks are to be minimised, there needs to first be a working relationship in place between the supply chain and marketing teams.
Communication is key and information needs to be shared in a clear, universal format to allow both teams to understand how the whole campaign process should work and what role they play in this.
Logistics managers need to be included right from the planning phase of the promotion campaign and will need to share information with marketing such as product availability and any challenges that may be faced with regards to the promotion.
Another important factor when planning the campaign is the logistics costings. When calculating the promotion’s impact on the company’s bottom line, it is vital that logistics costs are considered as they could create the need for rethinking pricing/promotion details.
When it comes to the implementation of the promotional campaign, the supply chain team’s role is just as vital as it was in the planning stages. It’s important that logistics can ensure that the anticipated volumes arrive as promised to ensure a smooth roll out of the campaign.
In the long run, supply chain teams can have a huge impact on the success of promotions when they work together with the marketing department. Not only can they help to eliminate risks and keep the campaign running smoothly, they can also help to bolster the financial return of promotions.