We have been involved in three sales based replenishment trials in the magazine category on behalf of newsagents through Tower Systems over the last four years. Two of these trials also involved our newsagency. While I cannot comment on the specifics of the trials for confidentiality reasons, I can say that the process is more certain now than ever before.
Newsagents are able to rely on not selling out of high volume titles based on a supply model which is driven by the sales cycle in the newsagency. This is very exciting for newsagents since it provides them with a supply model along the lines of what works for supermarkets and other key competitors in the magazine category. Properly implemented, SBR will help newsagents cut costs out of their business – that’s what the latest trial is showing according to newsagents I have spoken with.
While I am not privy to roll out information, I’d expect more newsagents to be part of the sales based replenishment model later this year as this approach to magazine supply moves from trial to implementation.
The key to SBR is accurate sales data. Newsagents without current version Windows based software will not benefit from SBR and that will make their businesses less competitive.
Tower Newsagents have led the field in the many trials. (Yeah, I know, it sounds arrogant – we and our newsagent partners have every right to be when it comes to good data management.) We’ve helped publishers hone SBR over the last three years and made it easy for the others will start participating soon.
SBR will be important for newsagents to embrace when it is more widely released as it makes us more competitive. Newsagents who are not ready or do not provide sales data will potentially hold the whole channel back. So, this is call to action – if you don’t comply with todays IT standards for newsagents, sort it out. The whole channel is relying every participant being up to scratch.