Iain Burns of the U.K. Book Industry Supply Chain Steering Committee and Andrew Hodder-Williams of consultant KPMG discussed a study of how to reduce the cost of returns undertaken by KPMG. The report estimated that returns cost 13% of sales for the British book industry, compared to a cost of 6% for general retail, and each returned book cost publishers one pound and booksellers 50 pence. One especially horrible statistic: there are 60 weeks of stock in the book chain.
With a flow-chart lover's precision, Hodder-Williams identified several problem areas in returns, prticularly when compared to other industries. He recommended improved technology and systems, which would allow, among other things, standardization of returns authorization and the elimination of many steps, including today's painstaking negotiations, from the process. Sharing information about sales and stock is also key, he said.
