Many Fortune 500 executives I work with face tough challenges as they strive to successfully emerge into an economy of recovery. Looking to do more with less, they are involving themselves directly in the day-to-day operations of their company. As they analyze budgets and look for ways to control costs, they are also focusing on ensuring program performance and customer satisfaction.
Over the past few years, we have seen many of the heavy Fortune 500 marketers going out to bid in an effort to consolidate marketing operations and fulfillment vendors.
When discussing vendor consolidation with these executives, I typically ask three critical questions so I can most effectively help them arrive at a solution:
1. How effective is your team at juggling multiple vendors?
Vendor overlap is a real issue when dealing with multiple vendors. Outsourcers managing similar tasks can be consolidated to save money and establish a direct chain of responsibility. Single-source providers gain greater visibility into the supply chain and can make recommendations on how to reduce overall spend through technology and process efficiencies. As organizations look for ways to emerge successfully into an economy of recovery, many are finding it crucial to cut out overlap.
2. Is your inventory being tracked and managed the best way possible?
Multiple vendors limit supply chain visibility. Having inventory spread out makes it hard to track and account for as it moves through the supply chain. A single-supplier model provides better inventory visibility throughout the process, especially when suppliers are chosen who leverage bar code tracking, online reporting and analytics tools, which can help companies analyze their programs for better decision-making.
3. Does engaging with multiple fulfillment centers ultimately benefit or hinder your operations?
The more business companies place with a vendor, the stronger the leverage they have to negotiate volume price breaks. Additionally, selecting vendors with a partner mentality as a single provider will often result in value added services being provided as part of the relationship (i.e., system upgrades, innovative ideas, etc.)
What questions do you have regarding how consolidating marketing fulfillment vendors can benefit your company, or more importantly, what critical questions am I leaving out?
In either case, I'd welcome hearing from you directly. If you would like to learn more about vendor consolidation, contact me at m-moroz@archway.com.
About the Author:
As President, Mike is responsible for overall service delivery for Archway’s clients and is the driving force behind Archway’s growth. Passionate about helping companies solve logistical problems, Mike thrives on maintaining a company that is flexible enough to meet the ever-changing needs of its clients and their individual marketplaces. Prior to joining Archway, Mike held executive management positions at Target Direct, ClickShip Direct Inc. and Damark International, Inc.