Let’s Build the Case
DATA, DETAIL AND A REASON TO BELIEVE
LogicSource utilized the Mutual Value Assessment (MVA) methodology to identify a major retailer’s product spend, current supply chain, sourcing processes and technology across the concept-to-customer lifecycle. Using an onsite team, we provided sourcing expertise for marketing print, catalog and direct mail, and through the OneMarket platform, continue to deliver significant year-on-year cost savings.
We know most organizations have important stakeholders who need good grounds for change and desire a clear roadmap to success. That’s fine by us. We enjoy thoughtful clients and we want to know the details ourselves. After all, we both want to be comfortable about the value and the opportunity before we enter a partnership.
One such Mutual Value Assessment (MVA) involved a major retailer whose Procurement organization had made significant efforts to introduce more formal sourcing practices and generate cost savings on Marketing Print, Catalog and Direct Mail spend.
Despite these efforts, however, the Procurement team was still working on how best to effectively influence their Marketing customers so they could continue to meet cost savings goals. They knew they needed to build a strong, detailed business case to motivate change.
In partnership with her CFO and CMO, the Chief Procurement Officer engaged LogicSource. Our charter was to help build a deep understanding of the available cost savings and to make recommendations on how best to improve their sourcing practices, surrounding processes and technology infrastructure.
LogicSource deployed a dedicated team and used our MVA methodology to quickly and comprehensively understand product spend, current supply chain, sourcing processes and identify any technology used across the concept-to-customer lifecycle. We poured over their data, mapped their processes collaboratively with the key players, and dove into their tools and applications.
Throughout the process, we keep in constant contact with our sponsors, sharing insights and early warning signs, problem solving together for organizational roadblocks, and getting all the issues on the table early.
By the time we presented the MVA deliverable, it was hefty (over 200 pages!). But they had been shoulder-to-shoulder with us, and they had co-created a lot of it, resulting in few surprises. The business case was very strong: cost savings targets could be met and, through the deployment of OneMarket, the speed of Procurement could be increased, and the efficiency of Marketing could be dramatically improved. Additionally, Finance would finally have the visibility they had long desired. After a detailed readout, senior leadership was able to quickly align themselves on the changes that needed to be made across several organizations.
LogicSource now has a small team of resources on-site at the client’s headquarters, which owns sourcing responsibility for Marketing Print, Catalog and Direct Mail. The program is delivering significant year-on-year cost savings to the client through a stable supply chain of industry-leading suppliers. In addition, LogicSource has introduced new Digital Asset Management, Workflow, E-Procurement and Analytics technology through its OneMarket platform, significantly improving processes and reducing the client’s time-to-market for print campaigns.
Tags: Case Study, Big Data, Analytics, Mutual Value Assessment