SBR

Summary

Sales Based replenishment remains a key activity that has demonstrably improved levels of sales efficiency for those titles and retailers that are involved. A dedicated SBR workgroup will continue to drive improvements and broaden the number of beneficiaries from the process.

More detail

For a number of years a cross industry group has worked, via a coordinated approach, to create an SBR process that seeks to be responsive to the differing needs of retailers and is consistent across the wholesale businesses.

Sales Based Replenishment is broadly managed two ways, firstly where initial supplies into a retailer are cut, then in response to consumer demand measured via retailer EPoS data replenishment supplies are triggered accordingly. Magazine supplies are consequently drip fed into retail throughout the on sale period and we call this allocation reduction.

Secondly, residual stock is held and is made available to all retailers where there is a demonstrable demand for sales. Initial supplies into these retailers have not been cut and we call this 100% allocation.

At present approximately 9000 retailers, 400 monthly and 50 weekly titles benefit from one of these SBR models which equates to approximately 20% of the all magazine volumes in the UK market.

The results clearly indicate that for those retailers that are receiving an SBR service have seen significant improvements in sales efficiency, some improvement in net sales whilst maintaining availability levels.

The current areas of priority for SBR development are:

• Increasing the number of titles and retailers on SBR
• Ensuring accuracy of EPoS data and developing best practice in use of EPoS 
• Establish a transparent SBR offer, regardless of wholesaler, for any retailer.
• Development of a consistent approach to fulfilment and the communication to retailers of available stock.
• Quantifying of the benefits of SBR to retailers and publishers.
• Continuing to engage with retailers to enhance the SBR model. 
• Improving communication on the key SBR activities and results

A quarterly bulletin will be produced by the cross industry group which will provide an update on progress on the areas of priority and also provide feedback on the extent of the SBR universe and impact it has on sales and efficiencies. This bulletin will be sent directly to key supply chain people and be made available on the JIG website.
 
SBR Report December 2009