The document outlines a strategic supplier alignment approach to optimize agency rosters in the face of increasing complexity in marketing management. It categorizes suppliers into three tiers based on their strategic importance and provides a four-step process for achieving alignment, focusing on defining current and future needs, identifying issues, developing a structured future state, and implementing necessary changes. The benefits include alignment with marketing strategies, reduced duplication, cost savings, and improved agency collaboration.

1. Strategic Supplier Alignment
A process for optimising agency rosters
TrinityP3
September, 2011
CONFIDENTIAL
DRAFT – COMMERCIAL IN CONFIDENCE
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marketing management consultants

2. An increasingly complex environment
• Multiple channels
• Multiple disciplines
• Multiple brands
• Multiple stakeholders
• Multiple suppliers
• What is the optimal
Structure? Process? Mix?
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3. How do you manage this growing complexity?
Advertising/Creative Direct Marketing: Signage, Print Design
Brand Consultancy Strategy Consultancy Electronic / Video Production
Strategy Consultancy (B2B B2C) Data Analytics
Channel Planning Media Analysis Connection Planning
Retail Specialist Database Design Custom Publishing
Media Planning Database Management Email Marketing
Media Buying Direct Response Management Experiential Marketing
Media Strategy List Creation Sourcing Event Marketing
Channel Planning Promotions and Premiums Mobile
Digital Media Planning Media Relations Point of Sale
Optimization Internal Communications Shopper Marketing
Digital/Interactive Marketing Speechwriting Social Marketing
Web Development Corporate Social Responsibility Sports Marketing
Search Strategic Counsel Sponsorship
Digital Creative Crisis and Issue Management Telemarketing
Social media Graphic Design Word of Mouth
Apps development Package Design Concept Testing
Platform development Branding and Identity Brand Tracking 3
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4. Complexity creates a complex problem
• This increased complexity leads to:
• Multiple service providers
• Wasteful duplication of services
• Increased time spent managing suppliers
• Confusion on roles and responsibilities
• Difficulty in maintaining brand consistency
• Inefficient use of resources internally and
externally
• Traditional procurement approach is to collect
these into panels based on capabilities.
• BUT there is a more effective, efficient and
sustainable approach.
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5. A strategic approach to supplier rosters
• Not all suppliers are created strategically equal.
• The requirements of each brand / category /
segment will mean that some are more Tier 1:
strategically important than others. Strategic
Partners
• Think of it in three levels or tiers:
• Strategic Partners – those suppliers that
influence the development of marketing or Tier 2:
communication strategy. Specialist Service
Providers
• Specialist Service Providers – those
specialists essential for strategy in their
particular field.
• General Service Providers – Tier 3:
those suppliers of often commodity General Service Providers
services.
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6. Strategic Supplier Alignment
• The Strategic Supplier Alignment approach
allows you to arrange and manage your
suppliers in a more strategic manner:
• Tier 1: Strategic Partners
Usually no more than three, work to
common objectives based on strategic
measures with significant profit / bonus
structure.
• Tier 2: Specialist Service Providers
Usually no more than 12 for any one brand /
category / segment, with bonus based on
performance in their category of expertise.
• Tier 3: General Service Providers
Unlimited in number and selected on cost
efficiency and value with no bonus
opportunity.
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7. How to achieve strategic alignment
• There are four steps to achieving Strategic
Alignment:
• Define the current state and future
requirements – through spend analysis,
interviews, performance assessment and
structural review.
• Identify issues and opportunities within
the current state – look for gaps and
duplication, underperformance and
shortfalls against future requirements.
• Develop future state – arrange supplier
tiers, by brand / category / segment and
overall to address the issues and
opportunities identified in Step 2.
• Implementation plan – identify the
changes required between current and
future state to develop the implementation
plan. 7
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8. Essential requirements for successful alignment
• Our experience has found that the
beyond the structure, performance
improvement requires the following:
• Alignment in performance objectives
for Tier 1 Strategic Partners,
(Remuneration Modelling* PBR*).
• Clear articulation of roles and
responsibilities and expectations,
especially in Tier 1 2, (Contract
Development* Engagement
Agreement*).
• Regular monitoring of collaboration
and relationship performance between
Marketing and Tier 1 Strategic
Partners and Tier 2 Specialist Service
Providers, (Evalu8ing*).
* These are TrinityP3 services
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9. Benefits of Strategic Supplier Alignment
TrinityP3’s Strategic Supplier Alignment:
• Provides a supplier structure aligned
to the marketing strategy.
• Has a high level of support and
integrity from marketing as built to
their needs.
• Delivers savings through reduction of
duplication, minimising waste and
economies of scale.
• Maximises the outputs of the
agencies by aligning and focusing
expectations and outputs.
• Minimises conflicts with clear roles
and responsibilities within the
structure.
• Provides the basis for future model
changes to changing needs.
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10. Strategic Supplier Summary
• Marketing is becoming more and
more complex, managing more
channels and more suppliers.
pr
agency
• Traditional Procurement
approaches to roster management
such as supplier panels no longer
achieve efficiency. digital
agency
• Strategic Supplier Alignment builds client
a supplier roster structure based on
the current and future strategic
requirements for the brand /
category / segment.
media
• Alignment is achieved through agency creative
contract structure, remuneration / agency
compensation models and regularly direct
monitoring collaboration and agency
performance.
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11. For more information please contact
TrinityP3 Pty Ltd
London
+44 7880 910 064
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