I am grateful to the Comag Marketing Group for publishing this memo from Wal-Mart which calls for magazine supply quantities to be based on store level sales in the interests of the environment. Wal-Mart is reinventing itself around a strong position on environmental and sustainability questions.
To: All National Distributors and Publishers
From Christy Jenkins
Subject: Magazine Bottom Up Distribution
As many of you are aware Wal-Mart has a major Sustainability project underway to eliminate waste by improved efficiency. One of the projects we have focused on to assist in achieving our 50 efficiency goal is bottom up distribution. This process utilizes individual store specific sales information based on consumer demand to determine inventory needs by store which then rolls up to allotment needs by wholesaler to the DC level.
This project can only be successful if all parties throughout the channel support the initiative. Wholesaler allotments need to be adjusted to reflect our true needs not the prorated portion of copies printed. In the true spirit of sustainability we hope these copies would be completely eliminated from your print order and distribution channel.
Please support us and the environment as we move forward in this initiative.
While the Australian magazine supply model has improved considerably over the last two years, more needs to be done. We continue to be oversupplied by poor performing titles – titles with a sell through rate of lower than 50%. Until there is a financial penalty for such undersupply this practice, driven mainly by publishers, will continue.