ROGERS, MINN. (March 26, 2009)– Despite all of the doom and gloom being reported in the media, some companies are using the recession as an opportunity to identify inefficiencies to strengthen their marketing programs. One thing that has worked for many companies (both large and small) is vendor consolidation.

 “At its core, marketing is an investment in positioning and promoting a brand, it is critical to the survival of a company in this turbulent economy and should not be viewed as a discretionary expense,” said Mike Moroz, president of Archway, a Rogers, Minn.-based marketing fulfillment company that advises Fortune 500 companies to manage costs by considering vendor consolidation and to strengthen marketing programs (and budgets) by using fewer vendors.

“I have encountered marketing managers who were juggling 10 or 15 outside vendors and had to tighten up budgets so they didn’t have to lay workers off,” said Moroz. “Outsourcing marketing operations to the low cost providers is a common way for companies to cut costs; however, managing multiple vendors can take a lot of time and resources and directly contribute to budget problems.”

Simplifying and streamlining marketing operations down to a single vendor can lead to greater operational efficiencies and can offer cost-saving opportunities. Some of the benefits of vendor consolidation include:

• Lower relationship management costs
• Lower administration costs
• Less business risk
• Increased performance, quality and delivery speed
• The ability to reallocate resources previously used to manage multiple vendors

Here’s an example of how vendor consolidation has worked for one of Archway’s clients:  

Before consolidating vendors, an internationally-known software company used full-time employees to manage and staff customer service operations for a particular division, relying on temporary agencies for additional project work or at times of high volume. However, managing a staff of full-time employees and multiple vendors proved to be extremely costly and time-consuming.

Executives decided that partnering with a single provider would be the most cost-effective solution to its budget and staffing issues. Archway was selected to take over the order processing business first, then streamlining its entire customer service model, from beginning to end. Archway provides an onsite account management team that works with key leaders in a partnership role. This proximity enables both Archway and the client to quickly resolve any issues that arise. 

Although the company downsized from a team of full-time employees and multiple vendors to a single outsourcing solution, the knowledge base was not lost. Archway continually supports businesses by transferring key employees to their own payroll to make the transition seamless.

Today, Archway is considered one of the software company’s premier vendors. Its role in the customer service operation has grown to include more than 165 employees. Archway also helps respond to more than 30,000 interactions each quarter, including phone calls, service requests and facilitating live chats. Additionally, the company continues to look for ways to consolidate its other marketing functions with Archway, most recently adding fulfillment. The partnership has helped transform its marketing operations – resulting in significant cost savings and the ability to allocate marketing resources to areas where they will create the most impact.

About Archway:
Archway is the leader in marketing operations management, providing fulfillment services, print management,business intelligence and decision support tools to leading brands and Fortune 1000 clients. Archway offers fulfillment and marketing operations solutions designed around the way clients go to market; whether it is through a distributed sales force, channel partners, retailers, franchises, branches, dealerships or e-commerce sites. These solutions reduce marketing operations costs, improve marketing execution processes, leverage emerging technologies and most importantly help improve the brand experience for client’s employees and customers at every touch point of their marketing campaigns.