Saturday, February 28, 2009

Black Peoples Eyes Yellow

Macro logistics and book business

Macro logistics in the book actually is exploring ways and methods for optimizing traffic flow of books and accompanying economic flows - from the sources (manuscripts), and raw materials to final consumer book products.

main objects of study are the Macro logistics logistics systems "industry of books" and "logistics product distribution chain. " Elements of these systems - independent of the enterprise: publishing, printing, bookselling, as well as persons (authors, consumers etc.).

Makrologisticheskie systems are part of the country's economy. They are classified by the following features:

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territorial (Municipal, regional, national, international);
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object-functional (inter-industry, industry, trade, transport, information, financial, etc.).

Purpose Macro logistics - to optimize the interaction of enterprises that make up the links of the logistics chain in order to best meet requirements of end customers and getting on that basis, profit.

Macro logistics deals with the formation of supply chains, channel selection product distribution, placement of storage facilities, industrial and commercial enterprises, the organization for transporting goods, etc.

Macro logistics examines the problems of interaction and mutual influence of books and other industries. Book Publishing, like any other industry, can not exist without the interaction with adjacent sectors that are well illustrated by the problems encountered in papermaking. Lack of quality paper and high prices for it in stems from the problems of manufacturers of raw materials for paper production - pulp, and they in turn derive from the problems of logging and etc. Such chains of relationships exist in other areas such as manufacturing and supplying equipment for the printing industry.

At the level of intra-industry studies Macro logistics deals with the structure of the industry, the interaction of its publishing, printing, bookselling components. Experts note that in recent years have increasingly at various meetings of publishers, booksellers and printers heard the term "corporatism", means first of all civilized relations in the business, responsible for the partners. Industry threefold, so there must be a balance of interests. At different stages of the book market publishers, booksellers and printers were in different circumstances: some field of activity became more profitable, some - at least, someone to grow faster, but someone has accumulated problems. Such fluctuations will occur in the future. The main thing that subjects of books to understand that the accumulated problems in one sphere of activity will inevitably impact on the general state of the industry as a whole, and hence on each of its component.

important direction Macro logistics - the study and optimization of logistics chains of commodity circulation. Links makrologisticheskoy chain are independent companies that use different concepts and technologies of work, quality control, marketing, etc. and most importantly - each with its own goals of activity. In this connection, to control the flow of cross-cutting material at all stages of its movement is required coordination of the interests of business partners. Agreement partners are reflected in contracts and other documents with legal force, as well as informal business contacts.

Logistic Optimization of economic flows in makrologisticheskih systems is in the following areas:

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constant search for compromises between the parties to supply chains over the costs and benefits of the movement of economic flows;
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integration efforts of participants in supply chains to achieve the best meet end-users;
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cooperation resources subjects market for their most effective use.

Equally important is the use of standard, similar and compatible technologies, including information. This requires the development and implementation in practice of standard requirements, standards, formats and other regulatory documents.

Use logistic approach to the optimization of flows in the supply chain, "the publisher - the buyer, you can consider the example of a wholesale company" Top-kniga "(Novosibirsk). Before the formation of the "Top Books" numerous retail and wholesale enterprises of Siberia were forced to independently order book goods in Moscow and St. Petersburg publishing houses and engage in delivery of books. The development of the "Top Books" enlarge allowed to accelerate and reduce the cost of delivery Book goods in the Siberian bookselling business. Currently, the wholesale company draws its customers the breadth of products (over 40 thousand titles) modern computer information technology, the speed of flow (new items arrive 3-4 days after publication orders bookstores performed the next day), the development of services (information - sales reports, ratings, publications, etc.; Financial - the system of rebates, deferrals of payment; technology - partners supplied the Free Software; Transport - Shipping cars, aircraft or railway transport).

Another example of improved information flows at the macro level (industry level) is a proposal to put a bar code is not only one copy of the book, as is done for many publishers, but also on the stack of books. This would provide an opportunity to accelerate the flow of goods on the site wholesale sales. To solve this problem requires that, first, publishers have realized the benefits of improved logistics process their partners - Wholesale enterprises, and secondly, agreed with printing company about the order of application of bar codes on the boxes.

Technologically problem prostanovki Bar codes on packages is not difficult. The main difficulties associated with the development of logistics thinking publishers, printers, booksellers. Than rather, they learn to see their benefits in accelerating the movement of goods in all sectors of the chain, not just on his own, the faster will address the logistics optimization at the industry level.

about how the level of development affects the Macro logistics logistics particular company can be judged by comparing a of the most advanced shopping Russia TH "Biblio-Globus", with a similar-scale German (Leipzig) bookstore. The high level of product distribution logistics allows German shop to support a wide range of products - 100 thousand titles of books ("Biblio-Globus - 50 thousand names), working with only seven suppliers (Biblio-Globus - 1500), without using the warehouse ("Biblio-Globus" forced to have a significant warehouse space).

On the other hand, as we saw in the "Top Books", a high level of logistics optimization made specific company positively affects the development of logistics retail network in the region of its activities, and promotes the development of publishing. This is confirmed by workers' Top-book: "When publishers are constantly works with leading booksellers, it is easier to plan the number of copies, he may in time produce overprinting can easily monitor progress and sell their books. Booksellers such a level can advance to arrange the promotion of the book at all stages (wholesale, retail), even if the book is still under preparation to print. With well-established booksellers technologies can effectively exchange information (various ratings and reports on sales), any marketing and advertising moves thought out and implemented together with the opportunities offered booksellers. "


Makrologisticheskie industry problems book business

In this section we outline some logistical problems of books, and in subsequent chapters devoted to individual functional logistics, we consider them in detail.

The movement of logistics flows in the book really shows the main participants in the movement book and associated flows from the inception of the manuscript before moving the book to the reader.



Book Publishing - enough of the industry. So, in October In 2000 the license for publishing activities were 17 thousand organizations, and the printing - almost 5 thousand A network of wholesalers, even though their power still clearly insufficient. The process of improving the retail network in the capital and major cities operate bookstores current level, although their number (especially in the provinces) is not enough. Complicated situation in the libraries, which buy about 10% of book production. Experts believe, that they do not distract customers from the acquisition of books and in this sense are not competitors book trade.

bulk publishing and printing enterprises located in Moscow and St. Petersburg, which exacerbates the problem of book distribution and delivery of goods throughout the country. Most developed bookselling chain is also present in the Central region. All this leads to the fact that people living in remote regions does not have the choice of bookselling points and presented in the book are goods that are residents of the Centre.

As one of the most positive trends of the industry's estimated growth In recent years the number of titles of books. Number of titles coming out in the country, evidenced by the variety of printed information available its residents. However, growth in the number of names is not accompanied by an increase in circulation, so that trade flows are becoming more complex in composition, but not more powerful. The complexity, diversity, short-run, quick response to the demand - these and other characteristics complicate the logistics movement of books to consumers. Similar trends are for the world book market. By the number of names submitted by the book market, our country lags behind the developed countries.

One of the areas of book development is expanding the range of wholesale and retail enterprises booksellers. Complicated logistics of wholesale Sales: purchases are smaller in size, but include more names. In retail, determining the direction is the establishment of shops wide range, but small amounts of stock. This requires the use of computer technology into account the implementation and the ordering of goods and modern technology delivery and preparation of goods for sale.

acute logistical problem is the inefficient movement of information flows in the industry. In the book business, with its large number of constantly moving the market names of the problem of information security is very complicated. We only note now that information about the books is duplicated in all phases of product distribution. Each book-selling enterprise is forced to create their own databases, have workers dealing with bibliographical descriptions of books. All of this slows down the progress of the book and leads to additional costs. In addition, in some cases information about the books come out of time, often on her search is required to expend considerable time.

book remains one of the main of entertainment and information. In the structure of free time she takes the second place (after the television). However, there have been a tendency reduction in reading some sections of the population for a variety of socio-economic reasons, and increased competition from electronic media communication and electronic publications. In this situation the logistics of books should be aimed at ensuring greater access to books products (Territorial, pricing, etc.) and better compliance with the requirements of even the few groups of buyers. In addition, it is necessary to expand its range, including in its electronic edition, using electronic means (eg, interactive book trade Internet) to sell books.

relatively safely and quickly entering the industry in the market (compared with other industries) contributed to the formation of the modern market thinking of leading entrepreneurs of books, the important part is the logistics. Awareness of the need to use in practice of logistics concepts driven by the fact that a reduction in profitability book business amid growing competition. Modern businesses understand that improving the book business, cost reduction requires joint efforts of the subjects of the book market.

Coordination subjects of the book market provides an opportunity:

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develop common or compatible logistics technologies that provide through-flow optimization promotion;
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not repeat the path already covered by other, more "advanced" firms;
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combine resources for joint projects.

Not quickly as we would like, but in the book business are developing partnerships. For example, the results of one survey revealed that most booksellers firms have among their suppliers 7.5 publishers with whom they are continually and successfully cooperate. However, only a third of respondents have experience in adapting their actions such as pricing policy, the joint analysis of market conditions, etc.

Thus, the urgent requirement of the present stage of development of the book case is the application of logistics concepts of cooperation, compromise, shared costs, etc.

modern book market has a great diversity enterprises, promotion channels of books to the buyer, but clearly remains inadequate development of service companies that provide logistics services. Such firms particularly important for small publishers and book-selling business, who can not perform certain activities. In the the growth of powerful, large publishing and bookselling associations of small businesses saving is possible only when well-established network of logistics service companies (transport, information, marketing, financial, educational, etc.).

great importance is the well-developed service and for powerful enterprises. Currently, such large bookselling business as "Biblio-Globus, Moscow", "Young Guard, have up to 2000 suppliers, which complicates their procurement activities. However, while these stores are in no hurry to move to the use of large wholesale business, although this could increase efficiency of movement of economic flows. They fear becoming dependent on wholesalers and eventually end up in worse conditions than in the case of direct purchase from publishers.

In logistics, this situation became known problem MOU («Make or Bye») the problem of the MOU by the English - «Make or Bye», ie "Make or buy. " This problem is as follows. Any company in their daily activities permanently solve: should do something about their forces or to turn to specialist firms. Independent production company reduces reliance on partners, from the fluctuation of the market conditions, increases the reliability of supply, but can lead to increased cost of production (services), the decrease in quality. Appeal to the specialized firms that usually means higher quality and lower-cost themselves, since these firms have the appropriate equipment, experience, qualified staff, etc. However, the company gets into bo1lshuyu dependence on the external environment from business partners.

Solving the problem of the MOU, it is necessary to answer the following basic questions:

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how the costs will be less if the product (service) will be purchased from third-party vendors;
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whether there is confidence in compliance conditions of supply and whether to rapidly change suppliers if they are of unsatisfactory performance;
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whether there is a potential for successful collaboration with suppliers to encourage him to long-term collaboration, cooperation, development of joint projects;
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not lead Whether manufacturing products in-house to divert unacceptably large resources (financial, human) or, conversely, the firm currently exists surplus of qualified personnel, which needs to be loaded.

Addressing the MOU requires creativity, which should find logistical compromise between two principles: "Do not be taken for what others do best," and "If you want something done exactly as you want, do it yourself. "

To develop successfully, the firm should specialize in the things she does do better than their competitors, and this means that in other areas it must rely on the skills of partners, to join with them in co-operation. The risk of loss due to increasing dependence will be the lower, the higher the quality of partners, their business reputation, the more developed the informational openness of the economy, etc. Thus, the higher the degree of development of logistics in the society, the more "relaxed" the company waives its own production secondary to his goods (services) and shifts the task to the specialized service firms.

There is also a way to gain control over the activities of suppliers. For this purpose various forms and methods: buying companies (see below for integration), the acquisition of shares, the union of unions, associations, opinion agreements, etc. These forms are characterized by deep - from a complete loss of self-controlled entity to an interim coordination to solve a specific problem.

problem MOU («Make or Bye») The problem of the MOU is closely related to the problems of specialization and diversification (expanding the scope of activities) firms.

rationale Specialization firmyspetsializatsii company in any field is improving its effectiveness through economies of scale activities. It is known that the growth of homogeneous activity is cost savings. Economic benefits, coupled with experience form the key areas of competence of specialized firms (the so-called cumulative competence). This explains why specialized The firm provides services with greater efficiency.

Diversification of reducing the commercial risk of adverse market conditions. There is always the possibility that demand for goods (services), which specializes in the firm, may fall sharply. In order to reduce adverse impact and stay competitive, companies must have other activities that can, if necessary, to rapidly develop. For example, in the case of decreasing demand for the book company, which has in its composition of actors involved in periodicals, will develop their production.

There are interrelated and the diversification to ADB.

implementing coherent diversification, the company develops new activities complement the existing ones. This allows businesses to exchange akin to qualified professionals, use other common resources (equipment, technology, etc.). Diversification means to ADB for the development of new firm activity, which became profitable in the market. The latter strategy was popular in unsaturated market.

Diversification of activities can be carried out by acquiring existing businesses or opening new. In the first case we speak about integration.

Distinguish integration forward and backward integration.

Integration ago - is the acquisition of firms producing raw materials (eg, wholesale booksellers, publishers acquire). Usually it is done in order to guarantee the supply of materials (In this example - books) in terms of increasing sales.

forward integration - producer acquires firms engaged in the promotion of products to the consumer (publisher acquires bookstores). This is done to increase efforts to ensure the necessary level of sales in a saturated market.

There is also a horizontal integration - organization of member firms, equally oriented and produce the same or similar products.

In the book actually quite intensively are the processes of integration. A few years ago, the rise of capital publishing firms and drawbacks in the organization of bookselling network led many publishers to expand its operations to include wholesale and retail booksellers. Later practice development dopechatok circulation led to the fact that publishers began to enter into closer cooperation with printing companies. As Example of intensive integration processes can lead Publishers "Terra", which is one of the first acquired a printing company, has entered the book trade by organizing a book club and book stores. Such processes are typical of other major Russian publishing houses. These processes are not new to the Russian book market, they had a decisive importance in the early twentieth century when, for example, ID Sytin created a powerful corporation, which included Publishing, printing press, an extensive network of booksellers.

illustrate the firm's largest book business, "AST", as were the processes of diversification and integration.

Association began to form in 1990 as a wholesale booksellers. Two years later, the firm's management has come to the conclusion that income can be increase if the sell their own editions. In addition, the ability to publish books on their own will ensure that publications that are in demand, always will be on the market. Was formed its own publishing house. Until 1995, "AST" sold mostly foreign books, in 1995, foreign publications were already about 60%.

«AST became actively involved in joint activities to other publishers. Was chosen as a simple and economically attractive working principle: two sides - a wholesaler and publisher - invest in the publication of the book, and then the income from sales is divided by two. Publishers who have not had their own system implementation included in the economic relations with "AST" and eventually became members of the general economic groups.

«AST" today - a group of legally and virtually independent publishers (over 30) of a uniform system of planning publications and a uniform system of marketing. In 2000, a group of "AST" has produced approximately the fourth part of the circulation of books published in Russia.

In "AST" wholesaler to a certain extent dictated by the editors of what is necessary to prepare the publication. Interested in selling their books and getting the maximum income version of listen to those recommendations.

From the perspective of the publishing strategy task management "ACT" is now in the coordination and adjustment of publishing plans in each of these revisions to avoid duplication.

In 2000, the bookselling network "AST has worked almost exclusively with their own publications (95%). The Group actively collaborates with its shops, has 40 own shops in Moscow. In what is supposed to strengthen and expand these ties.

note another trend of the book business - consolidation of enterprises. This trend largely determines the development of our industry in general and its logistics in particular.

increase the influence of large firms is a worldwide trend. Thus, For example, in 1999, about 90% of the U.S. book market controlled by 20 corporations. In France, the two firms (Ashett "and" Havas ") control half the market in Spain this same market share belongs to five firms. The trend towards consolidation is not unique to publishing, but also for Bookselling business. In the UK, two Company Uoterstoun "and" Dillons "control up to 50% of the market.

in Russia in 1999, almost half (47%), circulation of books released 22 major publishers. Worldwide the process of enlargement is treated with a certain degree of apprehension, because it can lead to monopolization. While large firms will increase their influence, driving small business, it could mean the fall competition, higher prices, reducing the diversity of goods, ie hinder the development of normal market relations. In the book actually strengthen the role of several major publishing houses risk that a small number of them will affect your company tastes, values, worldview.

in the professional print notes that strengthening the role of large publishing houses leads to the fact that small publishers becoming increasingly difficult to get through to the reader, as they more difficult to organize distribution of their books.

representatives of major Russian publishing association "AST" explains the motivations of entrepreneurs to expand their activities:

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opportunity to reduce costs production of books;
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acquisition of good professionals. When they were little and the cost of training is very high, it is easier to buy a firm in which such people there;
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gaining access to new information (for example, to buy the publishing house with a large bank of images is easier than every time to buy these images);
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ensuring control over the publishing house, which regularly hosts joint projects, ie be sure that the conditions for cooperation will not change;
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absorption of a competitor.

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