Integration between the supply chain and marketing areas is vital for businesses, so they can be better equipped to serve customers and satisfy their needs – a key element for business growth.

It’s through this important relationship that both areas must stay aligned with the organization’s goals and work together, so the business can prosper on a continuous basis. In this post, see why the partnership between the supply chain and marketing areas is strategic for a company’s success.

Keep on reading!

Supply chain and marketing must walk together for a successful business

The challenge of the marketing area in the struggle for space in a competitive market and for consumer preference only makes sense if the company can assure that products or services are available to be purchased.

Otherwise, frustration and disappointment can be irreversible. The lack of productive capacity to meet customer demand can negatively impact the company’s reputation and, consequently, its results.

Therefore, the procurement area must face the production chain management as a strategic factor and seek ways to ensure maximum product availability.

As to the marketing team, they must monitor all supply processes before a product or service is introduced to the market.

It is through this dialogue between marketing and supply chain that the company can decrease operational, financial and image risks. In this sense, communication and collaboration are crucial to assure synergy between both areas.

The biggest challenges for supply chain and marketing in 2022

This year, supply chain and marketing leaders must join efforts like never before, to tackle some of the potential issues that can affect the supply chain and negatively impact the customer experience:

  • Shortages and price increases: Raw material shortages tend to persist in 2022 and still affect product prices. And in uncertain supply chain scenarios, you must adapt quickly, be resilient and find ways to lessen any impacts.
  • Crises: During the Covid-19 pandemic, the imposition of confinement and increased demand challenged supply chains around the world. The crisis between Russia and Ukraine is impacting the supply chain, and forcing companies to adopt a new supply model, with a local and less global focus.
  • Transport and logistics: Whether due to lack of truck drivers or delays at ports, problems to transport and deliver goods increased the need to train marketing professionals, so they can manage the reputational impact of companies.
  • Climate change: Issues caused by climate change are affecting supply chains more and more. And no company is immune to natural disasters and extreme weather events. Therefore, both supply chain and marketing face the challenge of staying alert to this fact and rethinking their strategies.

The reputational impact of supply chain disruptions

A 2020 survey by The Economist, with the participation of 400 supply chain leaders, showed that the impact on businesses’ reputation is the worst consequence of a supply chain disruption.

Nearly a third (30%) of respondents to that survey reported an increase in customer complaints – which increases the challenge for businesses to ensure the best customer experience.

The executives said also they expect a significant increase in the level of collaboration between supply chain, marketing and sales in the coming years.

From now on, a stronger connection between such areas will not only mean a better way to meet demand, but will also strengthen brand loyalty – which will allow businesses to face issues with more resilience and grow in a sustainable way.

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