September 21, 2017 - Article - Brief

Outsourcing Your Print and Branded Merchandise Supply Chain

A multi-million dollar opportunity to fund growth, accelerate innovation, reduce risk, and improve your speed to market.

The Opportunity

  • The print and marketing communications supply chain represents one of the largest categories of indirect spend in consumer oriented businesses (CPG, Retail, Insurance, and Financial Services). The environment has grown far more complex as marketers navigate the digital transformation.
  • McKinsey & Company estimates that less than one in five organizations are fully optimized, and marketing expenditures usually fall in the top 3-5 indirect spend categories.
  • Evaluating your supply chain in these categories can yield significant budget improvement.

The Challenge
Almost 60% of companies haven’t assessed the marketing operations process to determine if risk reduction, financial improvement, or brand consistency improvements are available. Companies that bring marketing and procurement together to evaluate these expenditures are often surprised by the magnitude of opportunity before them.

So why do companies not investigate this budget category?

According to McKinsey, there are three reasons:

  • Distributed spend authority – often marketing departments believe that sourcing does not have the required knowledge to meet their needs. Individual businesses or business units believe they are unique.
  • Limited incentives– if marketing is focused more on service levels, expertise, and relationship effectiveness than on overall cost, the team may perceive a “sourcing initiative” as burdensome or adding little value.
  • Single minded emphasis on pricing – if procurement focuses exclusively on cost reduction, then marketing departments may perceive little value in working through the procurement organization.

The Solution
Assess Your Current State

A formal assessment can give you deep insight into your level of optimization, and quickly highlight your opportunity in this large expense category. SupplyLogic can help answer these simple questions:

  1. How much do you spend on print, marketing communications, and branded merchandise across the enterprise?
  2. What would an optimized supply chain mean to your company?
  3. How much risk are you carrying based on your vendor/supplier mix?
  4. What technology or process innovations might be available in today’s market?

View/Print the complete Brief here, PDF format

About SupplyLogic
SupplyLogic is a third party management company providing specialized managed services within the print, marketing communications, and branded merchandise categories. To learn how other companies have brought marketing and procurement together to create value for the organization, visit or call us at 1-877-767-5644.