using information to improve distributor performance jean srnecz sr. vice president, merchandising...
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Using Information to Improve Distributor Performance
Jean SrneczSr. Vice President, MerchandisingBaker & Taylor
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Using Information to Improve Distributor Performance
Shorter Life Cycles
Higher Consumer Expectations
Technological Changes
Our World:
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Using Information to Improve Distributor Performance
“Supply chain management is a set of approaches usedto efficiently integrate suppliers, manufacturers,warehouses and stores so that merchandise is producedand distributed in the right quantities, to the right locations,and at the right time in order to minimize system-widecosts while satisfying service level requirements.”1
1Managing the Supply Chain by David SimchiLevi, Paul Kaminsky, Edith SimchiLeviMcGraw 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
Develop Forecast: A single version of the truthInputs
• 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
Supply 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 developedHow long
Replenishment Understand how each of your partners drives
replenishmentSalesDemand
Promotional DemandAnticipationRamping down
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Using Information to Improve Distributor Performance
Forecast (Demand)Order frequency (Order cycle)Lead timeCase packVendor minimum (Order policy)Service Level (Safety Stock)Seasonality
Replenishment Basics
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Using Information to Improve Distributor Performance
Maximize SalesMinimize Returns
Lead time is the gunk that clouds the window on forecasts.
Lead time is what discourages the sales on deep catalog.
Lead Time
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Using Information to Improve Distributor Performance
RETURN % INCREASES WITH LEADTIME INCREASE
10-12 13-15 16-19 20-23 24-27 28-31 32+
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Using Information to Improve Distributor Performance
TURN DECREASES AS LEADTIME INCREASES
10-12 13-15 16-19 20-23 24-27 28-31 32+
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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-upHold for full truckLTL (Less than load)
Receipt Stow/Available for Sale
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Using Information to Improve Distributor Performance
New ReleasesBacklistChildren’sSeasonalPictorial
Importance of Publisher Internal Lead Time
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Using Information to Improve Distributor Performance
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%
Inventory Managers Paradox
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Using Information to Improve Distributor Performance
Get reprints done in 4 weeks!Standardize trim size if it improves turn-
aroundKeep back list alive, funding/purchasing
patterns are irregularReview grant of rights
Children’s/Picturebook
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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
Reverse distribution Rate of Sale Rate of Replenishment ‘Let Sell Down’ Re-Investment
Returns
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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 B&T in 2003 Incorporate into Supply Chain
Responsibility
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Using Information to Improve Distributor Performance
Share Information with Trading Partners Develop a single forecast Update and learn
Understand Trading Partners How they develop forecasts Operational procedures
Going Forward
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Using Information to Improve Distributor PerformanceUsing Information to Improve Distributor Performance
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
Going Forward