The Role of Marketing in Supply Chain Management
Posted on December 9, 2019 by Gerri Knilans
BetweenKPIs, ROIs and CRMs, the acronyms weuse in marketing seem to be endless. One acronym you may not consider rightaway in marketing is SCM, or supply chain management. And yet, SCM’s connectionto marketing is more pivotal than first meets the eye.
What is Supply Chain Management?
A supply chainis the network of those involved with the production and distribution of acompany’s products. Supply chains involve a multitude of activities, people,entities, information and resources. They incorporate many steps and processesused to deliver products or services to the marketplace. Examples includerefining raw materials, manufacturing, transportation, inventory control,finance, retailing, packaging and marketing.
Supplychain management is the vital process of planning, tracking and perfecting howgoods move throughout the system. Maintaining strong links within your supplychain impacts business costs and profitability. As such, everyone involvedneeds to be well-informed and understand their role within supply chainoperations. This is where marketing comes in.
How Marketing Affects SCM
Thinkof marketing and its most central element: communication. Marketing plays avital role in keeping the supply chain operating at peak performance. It takesa strategic perspective and operational role. Here’s how:
- Marketing helps stakeholders understand their roles and the target markets they serve. Marketing communications such as white papers, press releases, email messaging and newsletters help inform suppliers and others at all levels about the brand and products they support as well as how they play a part in the delivery of the final product and customers’ experience. This requires marketers to have an understanding of how all stakeholders fit into the supply chain.
- Marketing fosters collaboration among all links in the supply chain. By communicating regularly with your partners just like you would your customers and prospects, you nurture a culture of collaboration. Utilize specific messaging and distribution of information to connect with and integrate suppliers into your team. Use multiple platforms to keep in touch. Consistent contact helps maintain better alignment with all internal and external partners.
- Marketing gives partners the marketplace knowledge to align supply and demand considerations. While it is every department’s job to stay on top of industry trends and changes, the marketing department knows how to keep its pulse on the market. It’s vital to understand your target market’s needs, interests and challenges in order to address them with your products or services. Utilize the marketing department’s awareness to share that expertise throughout the supply chain and make course correction changes as necessary.
- Marketing informs customers about the expertise of its supply chain. Content can be utilized to inform readers, share expertise, announce news, highlight successes and more. A marketing team that develops content that showcases the expertise of its supply chain takes it a step even further. Whether you feature quotes from executives and other experts from your suppliers within your articles, or share testimonials and case studies that showcase their successes, thought leadership supports SCM.
- Marketing leverages brand awareness to propel business efforts. It’s important for supply chain partners to be brand-aligned in order to understand and represent each other effectively. Recognizable and successful brands can be leveraged in your outreach so prospects and customers know the quality and value of your products or services.
- Marketing translates data into useful expertise for the supply chain. Using data, information and analytics, the marketing team helps stakeholders understand the inner workings of the company and how the pieces fit together. The marketing team is ideally suited to identify weak links and recommend “fixes.”
The End Game
Whilemarketing may not be the first thing that comes to mind when you considersupply chain management, it is important to the efficiency and effectiveness ofbusiness operations and profitability. Marketing supports supply chain agilityand flexibility. Through a collaborative relationship, marketing providesessential marketplace information that impacts changes in demand. Additionally,it is responsible for strengthening the company’s competitive position andbuilding the internal and external relationships that support operationalefficiency. A culture of communication shared throughout an organization andits partners fosters collaboration, maintains a customer-centric focus, keepsstakeholders informed, ensures budgets are properly distributed and supportsdepartmental alignment.
