Published on November 6, 2007
BMI Management ConferenceMay 2005: BMI Management Conference May 2005 Joe Gonnella VP, Inventory Management & Vendor Relations Slide2: Barnes & Noble Ranks #1 in Quality Among Retail Brands in America for 3 Straight Years Slide3: Barnes & Noble.com Ranks #1 in Quality Among Online Booksellers Slide4: Barnes & Noble Today Fortune 500 Company Retail Sales: $4.4 Billion 820 Stores in 50 States E-Commerce Sales: $419.8 Million Slide5: A Vertically Integrated Multi-Channel Retailer Retail Stores E-Commerce Publishing #1 Brand and market leader #2 Specialty retail web site Exclusive product at higher margins Slide6: Multi-Channel Strategy Multi-Channel Retailers Find Their Groove* 24% of offline sales influenced by the Web 8% of online orders are returned to the store, and of those customers, 25% make an in-store purchase 16% of store customers also purchased online 15% of online customers began as store customers *Source: Forrester Research, 2004 Slide7: Supply Chain Infrastructure Warehouses in NJ, TN and NV 10,000 active vendors/40,000 publisher imprints 200 million units shipped annually to stores Just-in-time daily replenishment Rapid logistics network 10 million internet orders Real-time inventory network Stores Web site Slide8: Barnes & Noble Distribution Transit Times for B&N-Jamesburg, NJ Slide9: Barnes & Noble Distribution Transit Times for B&N-Reno, NV Slide10: There are 5 conceptual approaches to the Distribution Process Slide11: Warehouse Distribution Process BARNES & NOBLE Shelve Receive Slide12: Flow Through Distribution Process Slide13: Publisher Drop Ship Process Slide14: Bindery Drop Ship Process Slide15: Print On Demand Slide16: Print On Demand (Future State) Slide17: Warehouse Functions Performed: Backlist replenishment Demand wholesaling Book-in-Hand verification of bibliographic data Slide18: Participation in, and support of, Book Industry Study Group Slide19: BISG Structure/Organization BISG Committees: Distribution Executives Publications Manufacturer Executives Research New Technology Education Finance Marketing Policy Membership BISAC BISAC Sub Committees: Machine Readable Coding Identification Digital Sales Reporting Metadata Internet Commerce Rights Pub/Manufacturer EDI Subject Codes Slide20: Industry Standards Implemented: ONIX – Metadata, Bibliographic data SAN – Standard Address Number EDI – Purchase Orders, POAs, Invoices, ASNs (all ASC X12) Shipping Labels based on UCC standards Product Labels based on industry standards ISBN – ISBN-13, Bookland EAN Slide21: Standard Carton Labels Shipping Label Product Label (Bindery Application) Slide22: Standard Labels; Standard Placement Slide23: Measurements and Compliance Compliance is required for standards to be effective; regular performance reports are made to vendors Efficient Data Receipts Program (EDRP) measures and reports compliance with bibliographic data standards Efficient Receipts Program (ERP) measures and reports compliance with carton, product marking, and EDI standards Slide24: Inventory Management Slide25: Inventory Management Demand Planning Supply Planning Lead Time Measurement Slide26: Demand Planning Statistical forecasting using i2’s Forecasts done on point-of-sale data Monthly forecasts are generated for Demand Planner product Retail and Barnes & Noble.com for each subject, category and sub-category and ISBN Slide27: Demand Planning Methodology using i2: Statistical Forecasting Coding POS spikes Smoothing POS data Trend, Level and Seasonality A miracle occurs !!! Slide30: Supply Planning Inventory planning using i2’s Supply Forecasts received from Demand Mathematical formulas used to Chain Planner product Planner generate “optimal” purchases Slide31: Supply Planning Methodology using i2: Safety Stock mathematically calculated using the following: Customer Service Level Forecast Error Average Demand ISBN Lead Time Variability of Lead Time Economic Order Quantity and Frequency Balance cost of acquiring versus cost of carrying Slide34: Lead Time Release Order EDI Pick-up EDI To warehouse Warehouse schedule Shipping Hold for pick up Hold for full truck LTL (less than load) Receipt Stow/available for sale Slide35: Turn Decreases as Leadtime Increases Days Slide36: Return % Increases with Leadtime Increase Days Slide37: Standards enable collaborative planning forecasting and replenishment Slide38: Standards Enable Collaborative Commerce VICS Enables Standards Adoption Slide39: VICS CPFR® Committee Work So Far. Slide40: The VICS Model for CPFR Slide41: CPFR.org Slide46: Book Industry Study Group is the key! Slide47: Thank you!