Omnicom’s New Supply Chain Tool Adjusts Media Spend Based On Inventory

OMG’s launch of the Supply Chain IQ Score arrives as marketers contend with a supply chain crisis that is expected to outlast the coronavirus pandemic.

The tool looks to help brands see inventory levels – whether in physical stores, digital shelves, or in transit — and use the data to better optimize their media spend.

Shifts in media spend sometimes happen after customers had been sent to empty shelves, negatively affecting brand performance. The Supply chain IQ Score promises a way for marketers to intervene early and shift spend toward items that have high repeat purchase behavior, healthy inventory, and sales correlation to low inventory items.

″[The Supply Chain IQ Score] flips the historic response to supply chain disruption from ‘pull the spend back’ to ‘push the spend toward’ — increasing media ROI and helping our clients meet performance goals despite supply constraints,” Marc Rossen, senior vice president of investment and activation analytics for OMG North America, said in a statement.

The tool also has additional uses beyond managing low inventory, including geotargeting ad delivery, measuring sales lift in real-time, local store campaigns, supporting new product launches, and connecting promotion to reduce spoilage and waste, per John Schorr, OMG managing director for commerce.

The Supply Chain IQ Score is the latest commerce-focused launch by Omnicom, which saw its commerce and brand consulting practice report 13.8% organic growth in Q1 2022, outstripping its overall 11.9% growth rate. Along with a partnership with Livestream commerce platform Firework and a programmatic marketplace for point-of-purchase screens, Omnicom acquired digital experience consultancy TA Digital to expand its digital transformation, content management, commerce, and customer experience capabilities.

Similarly, competing agency holding company WPP in April launched Everymile, a first-in-class, end-to-end solution that manages the entire e-commerce process — including the supply chain — an uncommon move that could pit it against e-commerce providers like Shopify.