Using Information to Improve Distributor Performance

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Using Information to Improve Distributor
Performance
Jean Srnecz Sr. Vice President,
Merchandising Baker Taylor
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Using Information to Improve Distributor
Performance
Our World

• Shorter Life Cycles
• Higher Consumer Expectations
• Technological Changes

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Using Information to Improve Distributor
Performance
Supply chain management is a set of approaches
used to efficiently integrate suppliers,
manufacturers, warehouses and stores so that
merchandise is produced and distributed in the
right quantities, to the right locations, and at
the right time in order to minimize
system-wide costs while satisfying service level
requirements.1 1Managing the Supply Chain
by David SimchiLevi, Paul Kaminsky, Edith
SimchiLevi McGraw Hill
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Using Information to Improve Distributor
Performance

• Acquire what is saleable
• Research available
• BookscanTM POS
• iPageTM
• Title SourceTM
• For the Library Market
• Pub AlleyTM

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Using Information to Improve Distributor
Performance
Supply Chain

• Develop Forecast A single version of the truth
• Inputs
• Editorial
• Marketing
• Sales
• Supply Chain / Inventory Management ? The
  New Gods
• Customers - all flavors
• Independent Non-Traditional
• Chain Distributor
• On-Line Library
• Price Club Regional Chain

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Using Information to Improve Distributor
Performance

• Model Titles - Overall
• Sister Profiles
• Track record with intelligence
• By Account
• By Promotion

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Using Information to Improve Distributor
Performance

• Time Dimensions
• How Many / How Long
• Work with Accounts on Time Series Forecast

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Using Information to Improve Distributor
Performance

• New Titles
• Understand the forecast model
• How developed
• How long
• Replenishment
• Understand how each of your partners drives
  replenishment
• Sales
• Demand
• Promotional Demand
• Anticipation
• Ramping down

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Using Information to Improve Distributor
Performance
Replenishment Basics

• Forecast (Demand)
• Order frequency (Order cycle)
• Lead time
• Case pack
• Vendor minimum (Order policy)
• Service Level (Safety Stock)
• Seasonality

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Using Information to Improve Distributor
Performance
Lead Time

• Maximize Sales
• Minimize Returns
• Lead time is the gunk that clouds the window on
  forecasts.
• Lead time is what discourages the sales on deep
  catalog.

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Using Information to Improve Distributor
Performance
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Using Information to Improve Distributor
Performance
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Using Information to Improve Distributor
Performance

• Lead Time
• Release Order EDI
• Pick-up EDI
• To Warehouse
• Warehouse Schedule
• Shipping
• Hold for pick-up
• Hold for full truck
• LTL (Less than load)
• Receipt
• Stow/Available for Sale

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Using Information to Improve Distributor
Performance
Importance of Publisher Internal Lead Time

• New Releases
• Backlist
• Childrens
• Seasonal
• Pictorial

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Using Information to Improve Distributor
Performance
Inventory Managers Paradox

• Double inventory on a title gets 99 of sales
• Reduce inventory on a title by 40, get 90 of
  sales
• Invest inventory in other titles ? get that 90

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Using Information to Improve Distributor
Performance
Childrens/Picturebook

• Get reprints done in 4 weeks!
• Standardize trim size if it improves turn-around
• Keep back list alive, funding/purchasing patterns
  are irregular
• Review grant of rights

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Using Information to Improve Distributor
Performance

• Promotional
• Most front list behaves as a promotion
• Backlist
• Requires a good forecast
  Quantity
  and time dimension

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Using Information to Improve Distributor
Performance
Returns

• Reverse distribution
• Rate of Sale
• Rate of Replenishment
• Let Sell Down
• Re-Investment

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Using Information to Improve Distributor
Performance
What Drives Returns? Returns as Marketing
Expense? Returns as Lost Profit?
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Using Information to Improve Distributor
Performance

• The Forgotten Part of the Supply Chain POD
• POD - Top 50 Vendor for BT in 2003
• Incorporate into Supply Chain Responsibility

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Using Information to Improve Distributor
Performance
Going Forward

• Share Information with Trading Partners
• Develop a single forecast
• Update and learn
• Understand Trading Partners
• How they develop forecasts
• Operational procedures

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Using Information to Improve Distributor
Performance
Using Information to Improve Distributor
Performance
Going Forward

• Product Design and Packaging for Operational
  Efficiency
• Invest in Information Technology
• Data Warehouse
• Analysis Tools
• Make Data Analysis - The DNA of your
  Organization
• Investigate Collaboration Solutions