Marketing & Supply Chain: Chocolate and Peanut Butter?

Supply Chains: looking for good taste

Profits in today's market are notgetting easier. There's a famine on and the herds are thin, so there needs to be a more unified approach to hunting down opportunity and spearing it. Whilethere used to be a luxurious chasm between Marketing and Supply Chain administrators,the two camps now need to build themselves a longhouse where they can eat,breath and cook up a manufacturing company's future -- together.

Mike Burkett at Gartner points out that today's supplychain must become market-driven to increase value. "Fueling growthstarts with driving demand, which is becoming more of a team effort," saysBurkett.  The idea being that a supply chain is the protein (peanut butter) fueling growth while a marketing team attracts prospects (chocolate) and drives demand.

May seem and unlikely mix, but what about getting some of that chocolate in the peanut butter?

In terms of consumer products, recentGartner surveys have shown that innovative products are a top influencer ofdemand.  Consumer electronics are an obvious example: everyone has to havean Android or an iPhone; my own Android, new, retailed for over $600 (somewhatironic, considering I chose Android over iPhone because of the free apps). 

Marketing and Supply Chainexecs: you got chocolate in my peanut butter

Many organizations' business unitshave addressed and streamlined inventory complexity and reduced costs throughMarketing's "value engineering" and Supply Chain's "enhancedsupplier management" tricks and efficiencies, such as supply chaincollaboration around formula and B.O.M. management. Fair enough. 

Having done so these organizationsare now trying to better understand the markets served, and ensure that valueis delivered to both the customer and the business.  In plain terms: it'sone thing to get people to buy the innovation, a smartphone, say -- now make it sing.(Yes, there's an app for that....)

Often times, says Burkett,delivering real value to the customer is more about organizational change thanbusiness process.  Here are two methods Gartner says can be used toovercome organizational barriers:

1. Metrics and governance — Measuring performance against strategic business goals and enforcing accountability is often a prerequisite to breaking down organizational barriers. P&G holds the executives responsible for business results accountable for ensuring that value is derived from new product innovation
2. Talent management — New skills are required as supply chain seeks early involvement with customer-facing and product development partners. A formal program to regularly assess talent gaps in the march toward more advanced supply chain capabilities

Could chocolate and peanut butter work?

Supply chain organizations do seemto be collaborating more with the marketing team than withtheir procurement colleagues.  Time will tell but it's a trend to watchand consider.  

Marketing and Supply Chain intelligence really could be two great tastesthat taste great together.

Image: Evan Amos