Survey Says...Procurement Execs Unhappy with Insight from Data

Here at eLynxx Solutions we’re pretty big on data. After all, eLynxx software captures, records and reports on every task, step, action and transaction that is part of the management and procurement of the client’s print projects. Of course the ability to gain all of the insight that the data provides is one of the many things clients tell us they love about eLynxx.

That sentiment, apparently, is not common outside of the realm of organizations using eLynxx for print procurement.

An article published by our friends over at Supply and Demand Chain Executive Magazine cites a Consero Group survey of chief procurement officers performed in July. According to that survey 84 percent of the respondents claim to be unsatisfied with the level of insight they get from their organizations’ data. Spend visibility was reported as the metric most effective by a majority of the respondents. A larger majority, however, reported that they believe metrics used to evaluate procurement functions drive the wrong behavior.

At least we know that our focus on transparency, data and reporting have paid off!

Check out the article at sdcexec.com.

Survey Says...Procurement Execs Unhappy with Insight from Data

How to Increase Marketing Coverage With the Same or Less Marketing Spend

It’s hard to imagine anyone who would not want to increase marketing coverage. Today, with tightening budgets, it’s even harder to imagine anyone who would not want to increase marketing coverage with the same or less marketing spend. The key is not found in the latest trends in creative, online marketing or social media. It is found in something most people don’t often think about – marketing procurement.

An optimal marketing program requires online marketing, social media, phone solicitation, radio, cable, publication and tertiary advertising, along with all of the other communication techniques which bombard our senses. It also requires the sourcing and managing of direct mail, marketing materials, publications, in-store signage, point of purchase, displays, campaigns, labels and advanced packaging – all of which we shall call “print”.

Print presents a perfect opportunity to increase marketing coverage with the same or less marketing spend. And, it does not require cutting back on anything or sacrificing quality and service. It simply involves paying more attention, making a few adjustments and taking better control of how your organization procures its marketing print.

Believe it or not, you can increase marketing coverage with the same or less marketing spend in eight easy steps.

1. Eliminate Obstacles Between You and Your Vendors

If you are outsourcing any of the management or execution of your print marketing projects to a middleman like a business process outsourcer, you are placing an obstacle in your path. Eliminate the obstacle, and deal directly with the vendors providing the print you procure. This way you eliminate the third party cost, improve coordination between you and your vendors, eliminate mis-communication, speed-up the process and get the exact quality and service you require. Every obstacle you eliminate between you and your vendors equates to savings in cost, increases in efficiency and better results.

2. Be Specific

The procurement of print is no place for being vague or unprepared. You must be very clear and detailed about what you want. Specifications must be precise. Roles and responsibilities must be clearly defined. Quality expectations, project milestones and delivery schedules must be established and followed. When changes need to happen midstream in a project, which they will, all of the details must be in order, approved and documented to keep everything on-time, on-spec and on-budget.

3. Communicate, Communicate, Communicate

While it may not be readily apparent, there are many individuals who play a role in your organization’s print marketing projects. Often these roles span multiple departments. Bring agencies, freelancers and your vendor’s people into the mix and things begin to get very complicated. Consistent, clear communication between all of these people is crucial. Without it, steps get missed, approvals don’t happen promptly, information gets lost, time is wasted, deadlines pass, costs go up and chaos reigns.

4. Understand There is a Difference Between an Estimate and Final Pricing

A print marketing estimate is not a quote. It is a “rough” or “ballpark” budget price based on still fluid specs to give an idea of cost. Because of all of the variables, vendors can not provide a competitive price until all of the detailed specs, schedules, requirements and dependencies are provided. Thus, a budget price accepted as the final price for a project yields higher than necessary costs, as the difference between a budget price and a competitive price can be shocking. Planning can be achieved when estimates are made on what is known at the time. Cost savings can be achieved when the final competitive price is made on detailed and complete specs and requirements.

5. Insist on Transparency and Full Reporting

There are many details, dependencies and moving parts in a print marketing project. Without full visibility and instant reporting, small issues become big problems, minor changes become expensive change orders, a missed approval becomes days of expensive reruns, and on and on and on. In any print marketing project there are more than a thousand places where something can go wrong. Multiply that by numerous print marketing projects, each with dependent parts, and the possibility of tragedy is exponential. It is imperative to establish and monitor tasks, approvals, schedules, production milestones as well as real-time progress and access reporting to gain process control. Only then can efficiency improve, potential problems be minimized and print marketing costs reduced.

6. Minimize Expensive Change Orders

There are times when you have to make changes to your print marketing project. To minimize expensive change orders it is a good practice to engineer clear specs with everyone involved on the same page, so to speak. Transparency, based on each individual’s needs, requirements, rights and roles, further eliminates potential problems that add to the final price of a project. Make no mistake, when a print vendor does not charge for making changes, or for your errors, that vendor has the cost of potential changes already in the price – if for no other reason than to protect itself.

7. Stop Using Spreadsheets, eMail, ERP and General Procurement Systems to Manage Print Marketing Projects

Using utility software that is already in your office is a fast way to print buying frustration. In fact many organizations already supplement utility software the only way they can – with spreadsheets, email, phone calls and time-consuming meetings. Enterprise resource planning (ERP) and general procurement systems are not built to handle the requirements of custom-made print marketing projects. Turning to spreadsheets, emails, phone calls and long meetings results in a quagmire of files, busywork and post-it notes. At best, this leads to headaches and muddling through projects, while at worst, to confusion, missed deadlines, sacrificed quality, low efficiency, higher costs and possibly failed projects.

8. Use the Right Software Tools

Direct mail, marketing materials, publications, in-store signage, point of purchase, displays, campaigns, labels and advanced packaging – print – operates in a very unique environment with highly specialized processes and requirements. Software tools can be very helpful in managing and executing print. The trick is to use the right tools. Ask yourself if the software you are going to use helps you accomplish all of the steps above. Remember the most powerful software tools help foster an environment of fair competition among vendors, support compliance with diversity and environmental initiatives and ensure that quality and service are not sacrificed all while achieving lower costs.

By following these eight steps you will be able to increase your marketing reach for the same or less marketing spend, allowing you to redirect your budget into more market coverage, other initiatives or in whatever direction best meets your goals.

How to Increase Marketing Coverage With the Same or Less Marketing Spend

How to Increase Marketing Coverage Without Spending More

It’s hard to imagine finding any marketer who would deny wanting to be able to increase coverage of their target market. Given today’s environment of ever-tightening budgets and a growing number of channels, it’s also hard to imagine finding any marketer who wouldn’t love being able to do it without spending more. The key to increasing market coverage isn’t found in the latest trends in creative, online marketing or social media. It’s found in something most people don’t often think about – marketing procurement.

Any marketing that requires custom goods or services such as direct mail, printed materials, point of sale, signage, displays, packaging, publications and more presents a perfect opportunity to increase coverage or reach without spending more. And, it doesn’t require cutting back on anything or sacrificing quality and service. It simply involves paying more attention, making a few adjustments and taking better control of how your organization procures the goods and services it uses for marketing. Believe it or not, it can be accomplished in three steps.

Step 1: Eliminate Obstacles Between You and Your Vendors

If you are outsourcing any of the management or execution of your marketing material projects to a middleman like a business process outsourcer you are placing an obstacle in your path. Eliminate the obstacle and deal direct with the vendors providing the marketing goods and services you procure. Every extra step you eliminate from the path between you and your vendors will equate to savings in cost, increases in efficiency and better results.

Step 2: Be Specific

The procurement of goods and services your organization relies on for marketing is no place for being vague or unprepared. You must be very clear and detailed about what you want. Specifications must be precise. Roles and responsibilities must be clearly defined. Quality expectations, project milestones and delivery schedules must be established and followed. When changes need to happen midstream in a project, which they will, all of the details must be in order, approved and documented to keep everything on-time, on-spec and on-budget.

Step 3: Use the Right Software Tools

Custom printing, which plays a role in most of the goods marketers procure, operates in a very unique environment with highly specialized processes and requirements. While it might be tempting to try to procure it using enterprise resource planning or general procurement tools, they simply are not built to handle the details and requirements of the strictly custom nature marketing goods and services. That often leaves organizations turning to spreadsheets, emails, phone calls, meetings that result in a quagmire of files, notes and paperwork. At the best this leads to muddling through projects with frustration and headaches. At the worst it leads to confusion, missed deadlines, sacrificed quality, low efficiency, higher costs and possibly failed projects.

Software tools are helpful in properly managing and executing the custom printing you use for marketing. The trick is finding and using the right tools for the job. Before you begin using any software tools for marketing procurement, ask yourself the following questions. Does it automate communication between everyone who plays a role in the project – both internal and external? Does it enable transparency into all aspects of marketing procurement? Does it facilitate establishment and monitoring of project milestones with instant reporting? Does it support compliance with diversity and environmental initiatives? Does it foster an environment of fair competition among your trusted vendors? Does it ensure that quality and service will not be sacrificed for price, while assuring the best possible price? Unless the answer to all of these questions is yes, it is not a powerful enough tool built for marketing procurement’s unique requirements.

Following these three steps you will be able to increase your marketing reach for the same amount, or even less, by simply reassigning the money you would normally spend on outside services, middlemen and inefficiencies to actual marketing projects. You can keep doing it the same old way as before and settle for less. Or you can make a few adjustments, take better control and settle for more. Here at eLynxx Solutions we know which option we’d pick.

How to Increase Marketing Coverage Without Spending More

6 Reasons Why Business Process Outsourcing is Dead

A decade and a half ago business pundits in the marketing procurement area hailed it as a savior. Business process outsourcing – or contracting the operations and responsibilities of marketing procurement to third-party service providers – promised cost savings that would increase a company’s flexibility. According to these pundits, business process outsourcing provides some advantages that can increase flexibility. It helps transform fixed costs into variable costs. It allows more focus on core competencies. It increases speed in certain processes by removing them from within the organization’s bureaucracy.

Business process outsourcing is not, however, without its downside. As the business environment has changed over the past fifteen years so have many organizations’ views and values of flexibility. This has brought to light issues that work against the advantages of business process outsourcing. Even Wikipedia notes that service issues, unclear contracts, changing requirements and unforeseen charges, coupled with dependance on the business process outsourcer (BPO), actually reduces flexibility.

With that in mind, the only conclusion is BPO is dead and here are six reasons why.

1. It’s Too Expensive

BPOs charge fees for their services and markup what they procure to make a profit. As organizations demand more from their BPOs, those fees and markups increase negating the promise of flexibility-enabling cost savings. As an example, a review of InnerWorkings’ 2014 financials indicate revenue of $1,000,133,000 and gross profit of $229,459,000. This surplus accounts for a 22.9% excess companies paid beyond the actual cost of the printed marketing materials.

Businesses seeking more than the ability to off-load work to someone else can save more without the BPO interfering as a middleman.

2. It Takes Control Away

At first the idea of making supporting operations someone else’s problem sounds inviting. Then something goes wrong that makes an impact on core functions and the control that was given away is sorely missed.

When an organization has control over all of its operations potential issues can be caught before they impact core functions. Just ask any marketing department.

3. It Blocks Transparency

Giving up control also means giving up transparency into details that are critical to planning and budgeting for resources, projects and strategies. Without transparency, efficiency stagnates, reliance on outsiders is compounded and flexibility suffers.

With the help of software built for the operation at hand, organizations ensure transparency, achieve efficiency and become more flexible on their own.

4. It Impacts Quality and Service

While a BPO may not set out to reduce quality, its idea of what constitutes the best quality and level of service probably differs from yours. Giving up control also means giving up your definition of quality and service levels.

Operations responsible for the production of marketing materials critical to an organization’s image are better served when control remains within the organization. Creative cannot communicate clearly its ideas to the marketing manufacturer through a middleman. Its like the children’s game of whisper in my ear and I’ll whisper into someone else’s ear, and guess what was originally said.

5. It Stands Between the Organization and Its Vendors

When an organization uses a middleman like a BPO there is no direct relationship with vendors, resulting in goods and services produced with little interest or knowledge in who will use them or how they will be used.

While vendor relationships require careful monitoring and management, the synergy between organization and vendor is often valuable to the outcome of a project.

6. It Puts the Organization at the Mercy of Another

By using tools built for automated communication, process optimization, establishing accountability, gaining full transparency and instant reporting, an organization can gain flexibility while not being beholden to a third party for results.

Business Process Outsourcing is Dead – Software Tools are Alive

Some think that business process outsourcing is a way to minimize marketing procurement operations in order to focus more resources on core operations. Unfortunately, experience can prove otherwise.

Marketing initiatives can only be optimized when marketing procurement remains in charge, gains full transparency into projects, works with trusted and proven vendors, and has control over the dollars that would better be spent on improved marketing initiatives. By obtaining powerful software tools to support marketing procurement, efficiency improves, costs go down and more market reach can be obtained for the same or less market spend.

Marketing procurement has one goal and that is to produce the best marketing possible within budget. BPOs also have a goal which is to maximize their brokerage fees.

6 Reasons Why Business Process Outsourcing is Dead

Printers And The Art of Seduction

When making a cold call, there is something to be said for knowing who you are calling.

That something to be said is “always know who you are calling.”

Every few weeks, the eLynxx client services team will receive calls from printers that wish to join our vendor pool. Printers, we love you, but don’t do this.

eLynxx provides software and services to enable better results and experiences as print buyers buy directly from their own print vendors. We don’t have any vendors. Our clients (the print buying organizations) have vendors. We don’t. We do not have a vendor pool for you to join. Say it with me: eLynxx Solutions does not have any print vendors.

And we can’t simply add you to a client’s vendor pool either. We don’t get between buyers and vendors. Contact the prospect directly and sell them on doing business with you. If they agree, you’re good. If not, we can’t help you. We’re not involved.

But when you call them, have some sense of what they do and what you offer that could help them. Because when you cold called us without even reading the first page of elynxx.com, you made the suitor in gray look like a master of seduction. Prepare. Don’t be the plaything of the goddess in blue.

 

Oh, pumpkin. You tried.

Printers And The Art of Seduction