Understanding Supply Chains in Events

What is a supply chain?

• A network of manufacturers and service providers that work together to deliver products or services to customers
• Linked by physical flows (movement of goods), information flows (communication), and monetary flows (finances)

Types of supply chains

• Physical flow: the physical movement of goods/services from one place to another.
  • Example: transporting porta-loos to a music festival.
• Information flow is communication among suppliers and stakeholders using emails, calls, and meetings for quotes and invoices.
• Monetary flow: The pathway finances take for ordering, paying for, and securing supplies.
  • Example: 50% deposit to secure a photographer for the event.

Importance of supply chains in events

• Events rely on interconnected supply chains.
• Rely on relationships and expertise of other businesses to ensure success.
• Example: wedding marquee construction requires framework, external covers, lighting, furniture hire, etc.

Supply chain management in events

• Project success depends on the weakest link in the supply chain.
• Event coordinator may allocate resources to ensure smooth planning, but the outcome relies on supplier collaboration.
• Outsourcing is crucial to access specialized skills and resources.
• Outsourcing: acquiring processes that a company doesn’t have or doesn’t want to do.

Roles and relationships: Event contractors and suppliers

• Event organizers hire contractors and suppliers for different services.
• Contractors/suppliers: individuals/companies providing services for the event.
• Some contractors/suppliers are more important to the event than others.

Types of event contractors/suppliers

• Primary (critical) contractors: essential for event implementation and safety.

• Secondary contractors: influence event quality levels.

• Example Venn diagram:

  Typical primary/secondary event contractors/suppliers

  • Primary:
    • Sponsorship
    • Staging
    • Ticketing
    • Advertising/Marketing
    • Signage
    • Health & Safety
    • Traffic Management
    • Event Management Team
    • Risk assessment
    • Venue
    • Licensing/permits
    • Security
    • Water
    • Waste management
    • Toilets
    • Medical
    • Insurance
  • Secondary:
    • Entertainment
    • Décor/furniture
    • Bar and catering
    • Litter collection
    • Merchandising
    • Lighting & sound
    • Fencing/barriers
    • Public transport

• Some contractors can shift between primary and secondary roles depending on the specific event.

Contracting primary suppliers

• It may be necessary to contract primary suppliers months in advance to allow time for communication and clear expectations.

The 10 Cs of supplier evaluation

• Helps avoid issues caused by mismatches between your needs and a supplier's offerings.
• Used as a checklist to analyze different aspects of a supplier's business.
• Each element helps you understand the supplier's effectiveness and ability to deliver.

10 Cs of supplier evaluation breakdown

1. Competency: Assess the supplier's skills and capabilities, along with customer satisfaction.
2. Capacity: Ensure the supplier has the resources (staff, equipment) to meet your event's needs.
3. Commitment: Look for evidence of the supplier's commitment to quality standards (e.g., ISO 9001 certification).
4. Control: Understand the supplier's level of control over its policies, processes, and supply chain.
5. Cash: Assess the supplier's financial health to avoid potential risks.
6. Cost: Evaluate the supplier's pricing in comparison to others, remembering that other factors are equally important for event success.
7. Consistency: Ensure the supplier has processes in place to consistently deliver high-quality goods or services.
8. Culture: Consider if the supplier's values align with your own.
9. Clean: Evaluate the supplier's commitment to environmental laws and ethical business practices.
10. Communication: Confirm clear communication channels, including crisis response plans.

Decision Matrix Analysis

• A tool for choosing suppliers by weighing different factors objectively.
• It aids in making decisions when there are many factors to consider and multiple good options.
• Steps:
  • List supplier options and factors to consider.
  • Score each supplier for each factor (0-5).
  • Assign weights (0-5) based on each factor's importance.
  • Multiply scores by weights to get weighted scores for each supplier/factor combination.
  • Add up weighted scores for each supplier. The highest score wins!

Example: Caterer selection with Decision Matrix Analysis

• Figure 3 & 4: Illustrates using Decision Matrix Analysis to compare different caterers based on your criteria.

Activity: Applying Decision Matrix Analysis

• Choose five of the 10 Cs to analyze four shortlisted graphic designers for a private function.
• Use Decision Matrix Analysis to determine the best supplier based on your chosen criteria.