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Suppliers who do not transact electronically will lose business

For years newsagents have tolerated some gift and stationery suppliers who do not provide electronic invoices. Newsagents are moo demanding than a few years ago when it comes to transacting electronically.

Suppliers who do not provide electronic invoices are already losing business. One today told me it was too expensive. I wonder how expensive they will think it is when they realise the business they have lost.

More and more newsagents refuse to be held back by out of date processes.

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Newsagency management

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  1. John Kirkham

    Was having a whinge last week with a business owner, re suppliers insisting on using Fax machines/Fax number. Still can’t fathom why they’re still being relied on.

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  2. Mark Fletcher

    Was is a museum John?

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  3. Mark Richardson

    100% agree having to input stock manually is tedious and time consuming especially with first orders.

    Suppliers need to bit the bullet and invest now in their it systems ,those who don’t will suffer in the long run

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  4. Carol

    Although we receive almost all invoices by email we still have to enter them manually. How can we avoid that?

    1 likes

  5. Mark Fletcher

    Carol get them to send them as a CSV in a format you can import.

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  6. subaru

    Also, the quality of the supplied data is very important as well.
    With some suppliers, it is better to delete the electronic invoice and do it manually….

    GNS and their promotional packs for example.

    Fathers day Parker promotional pack containing a 1 line description of the invoice and total value, rather than a breakdown of each item contained in the box. I still have no idea of the original value of each product…

    3 likes

  7. Mark Fletcher

    Subaru once suppliers realise they will lose business because of poor quality data they will fix it. Until then our tolerance is their encouragement.

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  8. Peter

    GNS needs to lean this about quality of data all data Data not just promotion packs.

    2 likes

  9. Dean S

    Suppliers that cannot provide invoices in .ddo or .dd2 format have missed out on my business. I don’t think any of them have gone broke…….yet. 🙂

    Hopefully they will see in the near future it is worth making the change.

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  10. SUBARU

    Peter,
    I agree completely, but was using the Promo packs as an example as thier WORST offender.

    But in day to day invoicing of GNS I find
    -mixed up internal and external barcodes
    -no internal barcode data at all resulting in non scanning items
    -pack sizing in the description rather than in the pack column

    I do at least 2 GNS orders per week, so I see these problems regularly.
    I have complained, and they claim to be working on it, but it seems to be taking forever to resolve

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  11. rick

    Gns have definelty lost their way lately, customer service is crap, out of stock is as bad as I’ve ever seen it, I don’t mind them chasing new business, but big mistake to forget about existing customers. Ive placed my first rode with razor stationery. I do a substantial amount of stationery and feeling very let down by gns.

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  12. subaru

    Yup out of stocks are driving us up the wall as well.
    Also discontinued items in CURRENT Officesmart catalogues.

    I wonder if Alex Stuart can comment on any of the above?

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  13. May First

    Agree with other comments, data integrity & accuracy is paramount.

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  14. Alex Stewart

    I am currently putting together a response to this post. It is disappointing to hear this and again I would ask for some specifics around stock outs.

    When I have the appropriate information I will post a reply, but I want to provide as much factual information as possible.

    I am always willing to discuss what we are doing and understand your frustrations, yet no-one seems to take this opportunity and do so. Why is this?

    We are moving forward in many ways and the areas that are holding us back are a priority to resolve.

    The more you support our competitors means the less we can invest in the appropriate resources to deal with these issues and provide better quality of service, better data, better E-Commerce platforms. We have had to look to alternative sources of revenue for our business to move forward, in order to offset the decline we are all facing. Supporting them only exacerbates this problem!

    Our EXPO has already commenced and there are some COMPELLING offers available. And yes we are able to provide line level details for bundles in case you’re wondering….

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  15. subaru

    Alex,

    I suggest that you speak with your staff. We have complained about out of stocks almost every tuesday for quite some time.
    Simple, everyday items that customers need NOW from the CURRENT officesmart brochure aren’t avialable until mid next month??

    I have spoken to and emailed examples of data problems to Paul Middleton Eleventy Billion times as well. The data provided DOES NOT suit us as a retailer. What we imported via DD0 IS actually seen by OUR customers, and the description needs to be suited accordingly.
    Example:
    Having PK12 on the end of the description of an item we sell as a SINGLE item causes confusion for our customers

    There is a pack column in the dd0 file. Put a 12 in this column rather than adding it to the description.
    That way it is UP TO ME if I sell it as a single item of a pack of 12 to a customer, and the description is less confusing all round.

    I have cc’ed you on many issues in the past, only to receive an Out of Office reply, never an actual response.

    Frustrated

    2 likes

  16. Alex Stewart

    Subaru please don’t hide behind your blog name. I get a lot of emails and rarely have an out of office – unless I am out of the office. Please send me an email where you have cc’d me and never had a response. I may not have all the answers but your claims are lacking detail.
    Who exactly do you complain to every Tuesday? How about you come forward and at least give me the opportunity to resolve? That’s only reasonable isn’t it?

    1 likes

  17. subaru

    I’ve just called your PA to try and arrange a meeting for sometime Monday if possible.
    I look forward to be able to discuss these issues with you.

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  18. subaru

    Thanks for confirming our meeting on Monday Alex.
    I’m looking forward to working together on this.

    2 likes

  19. Alex Stewart

    I have asked several members of the business to provide some comments from the blog posts, and as Subaru has pointed out, have also made arrangements to meet and move forward on resolving these issues. I look forward to getting results and thanks for the opportunity.

    The following data may or may not resolve your concerns but it is an attempt to advise what we are doing to fix or improve each issue. Time and results will tell of course and I would also like to hear positive comments that recognise the good we are and/or have done to help your businesses. I know of many of these but unfortunately it’s always the negative that gets the airtime.

    Customer Service

    With the centralisation of Customer Service it will ultimately allow us to better monitor, control and provide better service levels, faster information, more accurate responses and in a consistent manner.

    Despite our customers in State locations having varying degrees of satisfaction with our Customer Service, from superior to low standards, we need to build a quality team where every team member has the appropriate skills and training to help customers with their needs. This takes time and effort and we are fast tracking this process. We ask that you recognise this.

    Customer Service is the first entry point to our business, and therefore critical. In days gone by, customers experienced, by today’s standards, low customer service performance with the exception of a few individuals who shone out. We need all of our team to shine and have implemented a key learning program to bring each one to a baseline that will enable us to provide this.

    Paul Middleton – Marketing and Digital Manager

    • We do provide DDO (electronic) invoices for ALL customers and ALL orders
    • We have fixed the Deals system such that, starting from this EXPO, ALL bundle deals will be supplied with fully itemised invoices – customers will continue to place orders via the normal Promotions system for the time being
    • We have appointed a Product Data Manager to address product data issues, including PPU accuracy, product descriptions and UOM’s. This is a full time role. We will regularly publish a tally of “cleaned” codes showing how we are progressing.
    • We are working with GS1 to implement comprehensive, high quality data across all our major suppliers (and many smaller ones). If you don’t know what this means we can tell you more.
    • We are implementing a Product Information Management (PIM) system to ensure data integrity across ALL products. This allows us to capture and store more data from more suppliers and feed to the areas it needs to go.
    • We are starting to consolidate our internal systems (Micronet) to improve processes that will result in more efficiency, consistency and data integrity. Moving from 4 licenses of Micronet (legacy) to 1 National consolidated system.
    • We are trying to engage with industry partners in discussions around facilitating electronic ordering direct from customers’ PoS (or other ERP) systems.
    • We have added a ‘Report Issue’ button on the product pages on GNS Online to allow customers to report any issues with product data – if customers can assist us in identifying the issues it will result in significantly quicker resolution. With the Product Data Manager any customer reported problems will be prioritised.

    Neil Sinclair – National Merchandising Manager

    OOS
    Agree, it’s unacceptable to be out of stocks on core lines. The answer for each SKU is not the same, but we need to do better in communicating and offering substitutes. For example, with some Sovereign SKU’s where there is a wide range of other products from the same factory and where we are low on one SKU, we are unable to order that one SKU until we build sufficient volume across the range of SKU’s. On other Sovereign SKU’s, where it makes commercial sense, we will move to away from Sovereign to ensure consistent supply with branded alternatives.

    Replenishment for some lines has been affected due to the factory price increases as well as exchange rate increases with the A$ to the US$. Looking for alternate supply options to help alleviate some of these price increases takes time and resources

    We have recently employed two new people to focus on this and other core Merchandising activities. We have reviewed product categories and split these amongst the team. We are also up-skilling the team to remove bottlenecks and provide back-up when needed in peak periods.

    Shane Kirchner – National Replenishment Manager

    We are running a daily report to review A grade inventory to assist in trouble shooting, by providing better communication on ETA’s, review of our re-order triggers, etc.
    This will provide further insight re Supplier OOS issues and use this to better alert key internal contacts and communicate externally.

    Additionally we have recently appointed two staff to manage solely backorder management and escalation, as well as Special Orders and enquiries, assisting our Customer Service Team.

    9 likes

  20. Mark Fletcher

    Alex if possible it would be good to have follow up from the meeting published here to complete coverage of the situation posted by Subaru.

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  21. Alex Stewart

    Hey Rick (#11),
    Subaru was good enough to come forward and we will be meeting to discuss these issues with the goal of resolution.

    Instead of supporting a competitor why don’t you do like Subaru and give us an opportunity to address your issues? Are any of our competitors owned by Newsagents and retailers in the industry? I don’t believe so……

    Surely it is your own interests to help us help you?

    And yes Mark, I will happily post results and actions from our meeting.

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  22. rick

    Alex,

    I have been positive about the direction you were taking GNS, however the failure to maintain a level of customer service and supply levels through this transition has had a negative impact on my business. Being newsagents owned does not give GNS a right to demand loyalty when what it is dishing up to it customers is second rate.
    My decision to use alternate suppliers to meet my customers needs should set alarm bells ringing within GNS and you should be asking questions.
    I am more than happy to be involved in discussions around my issues, and I have had some discussions already with people inside GNS, which has led to some positives and quite a few let downs. Mark knows who I am and he can pass on my details to you

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  23. Peter B

    We have similar problems with stock at ANCOL, so while I can’t specifically engage in the GNS discussion my points on this matter are similar and as follows.

    If we are out of stock of items for a period of time our customers go somewhere else, and some won’t come back so that is bad for our business.
    Our cost prices seem to be rising all the time, Kmart for example is killing us on price of both generic and branded product. I hear 20 times a day lets go to Kmart or officeworks.
    Loyalty from our customers perspective is at best 50% of sales.
    We are supposedly in a global economy, and there are other suppliers out there who can fill our orders, many times at a cheaper price than being loyal to GNS or ANCOL.
    ANCOL have lost thousands of dollars from us over the last 2 years just by being too expensive. Their loss is called COMPETITION, which we face every day.
    If newsagents do not diversifying and actively look for continuity of product and cheaper product both generic and branded from suppliers then they will lose market share.
    Having said that we Try to look after traditional suppliers as much as possible, but that is decreasing every year as they haven’t been able to move forward with the trends.

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  24. ken

    Alex,
    I rarely have a problem with supply but I do have a problem with your statement [the more you support our competitors means the less we can invest in the appropriate resources to deal with these issues] That’s a good one coming from gns. When I asked gns as to why my old rep was told to go to post office 20 yards away directly opposite my newsagency in a town of 400 people to push their products I was informed gns needed to expand into other businesses to survive. When the state manager and my new rep came to my shop recently to dicuss drop ship services it was only after they had been to the post office first and here you are wanting loyalty and support.SUCK IT UP BUTTERCUP, there is no loyalty in this game only survival Try practising what you preach before you condemn those who do what they must to provide the best possible service to their customers.

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  25. Alex Stewart

    Hey Ken,
    If I want loyalty I’ll buy a dog. Seriously.

    It’s called commercial reality. Do the math. You support other businesses sure, we have to find other customers to make up for what you no longer buy.
    Obviously you don’t get it – but that’s another issue. We are trying to transform a mature business to enable us to be better positioned to service you, and all of our customers. If the post office down the street sees that and you don’t that’s your issue. As for Buttercup – well what can I say?!

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  26. rick

    Let’s stay constructive, GNS are still my main stationery supplier, they have just gone off track in some areas, its in all our interests to get things right. If Alex acknowledges they have challenges, that’s a start, we need to work together, and I’m prepared to do that.

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  27. Alex Stewart

    Well said Rick and thanks for your support. We do have some great things coming up – whether now over EXPO or soon after.

    I look forward to getting some positive comments….maybe one day…..

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  28. Mark Fletcher

    There are complexities on all sides of the debates here – for newsagents, GNS and suppliers to GNS. We all have to do what is right for our shareholders first and foremost.

    For transparency, this is what I would want GNS to do if I was still a shareholder:

    1. Retreat to one warehouse that is world’s best practice.
    2. Sell to all newsagents nationally including SA.
    3. Implement data management standards that are world’s best practice.
    4. Create a retail partner portent for ordering that is world’s best practice.
    5. Eliminate 90% of reps.
    6. Pass on savings of points 1 and 5 to customers in more competitive pricing.
    7. Reward newsagents based on year on year growth.

    I appreciate this list is radical. The challenges being faced by GNS and newsagents in the stationery space are generational. The response has to be radical.

    2 likes

  29. eric

    I am frustrated that gns is slow in replenishing stocks . I hope they have more variety of quality stationery and get rid soVereign products

    1 likes

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