Magazine KPIs

The Australian Newsagents’ Federation has asked for input on magazine KPIs for their discussions with magazine publishers and distributors. Here are the suggestions I have submitted for consideration:

TECHNOLOGY

1. Implementation of appropriate systems in supplier offices to enable scale out decisions based on current data and not data 13 weeks old as happens today.

2. Provision of free XchangeIT access for newsagents who provide compliant on time data consistently for 3 months.

3. Mechanism for advance warning of problems/issues with data and other IT challenges which impact on newsagent operation.

SUPPLY

1. Scale out to reflect title performance in that outlet with supply to be no more than 25% above recent sell through rates except in exceptional circumstances where the additional product is expected to sell due to cover feature or special promotion. With higher scale out to be accepted for an additional fee.

2. Offering of a carrying fee for titles which do not meet minimum performance criteria so that the newsagent is paid to carry the title.

3. Newsagent to be able to easily and electronically alter order quantities (i.e. without having to call a call centre and wait on line for too long)

4. Changed supply figures not to be altered without reference to newsagent unless such change absolutely supported by sales data.

5. No cut of supply below current recorded net sales.

6. No reissue within six months of last issue of a title.

RETURNS

1. Online returns to be implemented ASAP.

2. Returns to be credited within 48 hours of provision of electronic returns data or 7 days of provision of physical returns form.

3. Returns to be called no later than the date of the next issue of the same title going on sale.

4. Agreement of record keeping requirements for returns form and immediate acceptance in the event of a distributor losing a form and the newsagent proving local store compliance with standard practice.

ACCOUNTS

1. The threat of cutting off of supply to cease in cases where there is a legitimate dispute over the amount owed.

2. Agreement in independent arbitration in the event of a credit dispute – similar to an ombudsman approach. This could be something the distributors all fund like the telecommunications Industry Ombudsman.

I appreciate that some of these points will be contentious to distributors. I’d expect that newsagents, the people carrying an unfair portion of the financial cost of the magazine distribution model, would think the suggestions are fair, probably even too soft.

Hopefully there will be healthy debate around this issue. I am pleased to see it on the ANF agenda and newsagents being consulted.