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Flexible Supply Chain Management Improving the efficiency of distribution in the magazine value chain

Flexible Supply Chain Management Improving the efficiency of distribution in the magazine value chain. 22.9.2010 Jari Viljasaari. Agenda. Technology drivers and enablers Changes in customer need and behaviour Market demands towards Itella Lessons learned from CrossMedia/FSCM .

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Flexible Supply Chain Management Improving the efficiency of distribution in the magazine value chain

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  1. Flexible Supply Chain Management Improving the efficiency of distribution in the magazine value chain 22.9.2010 Jari Viljasaari

  2. Agenda Technology drivers and enablers Changes in customer need and behaviour Market demands towards Itella Lessons learned from CrossMedia/FSCM

  3. Technology drivers and enablers Increased available bandwidth Broadband in every household? Tablets and eReaders Printing service providers continuously investing in personalisation technology

  4. Changes in customer need and behaviour Publishers Consumers Anywhere, anytime, anything mobile and/or physical Periodical volume in decline magazines dying shorter lifecycles electronic substitution • Demand for personalised content • versioning • attachments

  5. Market demands towards Itella Still increasing pressure for efficiency in physical delivery Main challenge Universal service obligation, nationwide 5-day delivery Possibilities Closer value chain co-operation

  6. Lessons learned from CrossMedia/FSCM Efficiency demands already noted and further actions taken Virtual Sorting Centre - Itella Sorting Service - development started already 2007. Version 1.0 in production since 2009 Demands found during CrossMedia/FSCM not fully met by Sorting Service Sorting Service XML upload/download content should also take into account information flow happening prior users mailing system -> XML upload/download content jointly developed within the research program

  7. Sorting Service 2.0 with FSCM lesson Support for selective inserts • The sorting service bundles or boxes and makes transport unit unitisation of the batch optimally from the point of view of the distribution process • checks the addresses of the postal items, corrects the address mistakes and – the manifestations technically if needed and sorts them in intelligent manner according to right postal address • forms the unit labels and the Internet sales list (ISA) and • produces reporting data batch-specifically and monthly of the posted items • Enhanced XML definition supports several address files in one upload document noting information flow prior sorting service • Enhanced XML definition supports different addressee characteristics per recipient in one upload document noting information flow prior sorting service Support for selective inserts

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