Based in Chicago, ReaderLink is the largest full-service book distributor in North America. It services America's top big-box retailers, warehouse clubs, and grocery chains. Its products range from the newest bestsellers to evergreen products like children’s books and reach 99% of the US population every week. Shipping 300 million books annually, ReaderLink holds a significant market presence in the distribution of printed trade books.
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Success Story
ReaderLink
ReaderLink Achieves a 30% Increase in New Product Forecasting Accuracy with Blue Yonder
Improved forecast accuracy for new product introductions up to 30% for some retailers and segments
Customized assortments resulted in significantly reduced forecast errors
Inventory aligned with customer demand minimized excess stock and reverse logistics
The Company
The Business Challenge
Forecasting new products is always a risky proposition, especially when a distributor is launching up to 50 to 100 new items every week. ReaderLink was encountering stockouts and lost sales in some stores, coupled with overstocks and product returns in others. It needed to create more accurate, customized new-product forecasts at massive scale.
The Solution
ReaderLink implemented Blue Yonder Demand and Fulfillment Planning to enhance forecast accuracy, utilizing advanced algorithms and an attribute-based model. This has resulted in improved forecast accuracy for new product introductions by up to 30% for some retailers and segments.
"America’s largest retailers rely on us to create dynamic, high-selling assortments and consistently introduce new titles—as many as 50 to 100 new products weekly. Getting the forecast wrong means stockouts, overstocks, dissatisfied shoppers and costly returns. Blue Yonder enables an attribute-based forecasting process that has improved our accuracy for new product introductions by up to 30% for some retailers and segments. By leveraging Blue Yonder to digitize forecasting, our analysis and planning processes have become much more dynamic."
–Kyle Marx, Executive Vice President, Supply Chain Planning and Enterprise Analytics, ReaderLink.
ReaderLink navigates demand dynamics with advanced forecasting solutions
Operating at the forefront of the North American book distribution industry, ReaderLink encountered a significant challenge with its new product forecasting, which directly impacted profitability. With a distribution network that introduces up to 100 new titles weekly, precise stock allocation was critical. Stock discrepancies led to both stockouts and overstocks, negatively influencing its bottom line.
In response to these challenges, ReaderLink sought the expertise of Blue Yonder, already a trusted partner for its space planning solutions across 100,000 retail locations and its attribute-based model. With the integration of Blue Yonder Demand and Fulfillment, the company leveraged powerful forecasting algorithms. This approach, centered around attribute-based forecasting models, enables a deeper understanding of demand dynamics.
Customization and precision at scale
ReaderLink's enhanced ability to customize assortments for its massive retailer network resulted in significantly reduced errors in forecasts. With a data-driven approach, the company transitioned from general to highly specific forecasting models, utilizing real-world sales data and product attributes.
Achieving better results consistently
By accurately forecasting demand, ReaderLink minimizes excess stock and reverse logistics, which were previously eroding profit margins. Blue Yonder's solution aligns inventory with customer demand, fostering satisfied retailers, customers, and a steadier financial outlook. This has resulted in improved forecast accuracy for new product introductions by up to 30% for some retailers and segments.
ReaderLink's journey with Blue Yonder's innovative solution exemplifies a successful leap from traditional forecasting to a precision-driven model, setting a new benchmark for efficiency and profitability in the book distribution landscape.