8 milkshake
and a backup option. Suppliers need steady
volume and active ongoing relationships,
which do not count if they exist on paper
only.
“Can you rely on a supplier whom you
have not bought from in the past six
months?” he asks.
On the other hand, having too
many suppliers—and maintaining their
qualification—can be expensive. “Having
a quality relationship is active and the one
that gives suppliers volume,” Osadchiy
says. “You can also be a good customer to
a supplier if your orders take into account
the supplier’s available capacity, i.e., order
a bit more in off-peak periods and do not
add more to the peak demand. This allows
suppliers to plan their production better
and maintain steady capacity utilization.”
Like others who analyze the inner
workings of supply chain management,
Osadchiy warns that thinking of customers
and suppliers as arranged in a serial supply
“chain” is an outdated concept that can
blind companies to significant opportunities
to smooth out variability in demand.
Instead, he recommends thinking of your
customers as elements in a portfolio, which
gives you the option of assessing changes
to that portfolio in terms of the impact on
aggregate demand.
The partnership and
relationship matters
At the same time, marketers should
understand how they represent part of
a supplier’s portfolio of customers, and
explore ways to alter their demand to help
manage demand. Barkley Russell, who runs
The Barkley Russell Agency, says that while
having a diverse group of suppliers provides
flexibility, having a strong loyal team of
vendors that produce quality work is critical.
“It is important with the challenges of
today’s supply chain for a supplier to be
totally frank about what can be produced
and delivered in a timely manner,” Russell
says. “This can help direct you to the best
options to meet your clients’ deadlines.
They should also have their own proven
team of local vendors that support them
and can provide quick turnaround in
particular to small personalized orders.”
The process, if followed thoughtfully, is
simple and effective: Be honest about your
needs and be loyal. There are so many items
The value of marketing supply chain
management for risk mitigation, especially
for today’s marketers, is simple: The
more you see and control, the fewer
moving parts involved, the less that can
go wrong. “Everywhere supply chains are
complex, interconnected, reaching many
tiers upstream and downstream from a
firm,” Osadchiy says. “Your suppliers often
source from their own suppliers and your
customers may be reselling your product,
or using it to serve their own customers.
Getting visibility into these sub-tier
relationships is important for understanding
your supply chain.”
The best strategies depend on who you
talk with. Osadchiy says that practice shows
that it is better to have a few relationships,
where you don’t have to rely on a single
supplier, but have an alternative supplier
ALWAYS MAKE SURE COMMUNICATION IS UP
TO PAR, SUPPLIERS HAVE THE PRODUCT
PHYSICALLY IN STOCK, AND THEIR SHIPPING
TIMES AND PRODUCT COSTS MATCH THE
NEEDS OF YOUR BUSINESS.”
— AC HAMPTON, FOUNDER & CEO, SUPREME E-COM
November 2022