Check out twelve issues worth of supply and return data for Farms & Farm Machinery for a newsagency. On average, one copy is sold in this store. The average supply from Network Services is three copies – recently bumped supply to four copies. Click on the image for detail.
Okay I am only complaining about one too many copies, maybe two. It is oversupply nevertheless. This from a magazine distributor known for engaging in bullying of newsagents over account payment yet accepting no responsibility for creating account challenges through oversupply such as for Farms & Farm Machinery for this newsagency.
If Network services was fair in its supply to this newsagency and newsagents more widely, it would not increase supply until there was evidence of sales being lost due to lack of stock in-store. This would require an analysis of sales data.
If a store sells out in, say, week three of the on-sale and there is no evidence of a sale over the last year in week four for weeks when stock was available then I’d say there is no justification for a supply increase. If, on the other hand, there is evidence of a sale in week four then it would be reasonable to increase supply.
It is unfair for network to demand that we are responsible for our indebtedness to them when they refuse to give us reasonable levers with which to control our level of indebtedness. Even transparency would help – like a discussion around allocation algorithms.
Newsagents who complain to Network about oversupply are met with – it was an allocations error or I can’t explain it or the business rules indicate you need more stock.
In this case of Farms & Farm Machinery, the company’s processes have failed the newsagent. They have resulted in more stock than is necessary being sent. Supply for this store should be at no more than two copies. Sending the extra stock lumbers the newsagent with unnecessary costs.
Magazine publishers using network should remember this scenario when wondering why newsagents early return their stock. It is this creeping oversupply that angers newsagents and gets them striking out.
The merchandising unit for one of our Christmas items has a LCD screen on which plays a commercial for the item. This is the perfect merchandising unit. The video attracts shoppers. In a minute they see how the product works and who it appeals to.
