The majority of book publishers have sold their product in the same way to the same marketplace since the 1800’s. In that marketplace, the bulk of sales occurred in the independent and chain bookstores. Over the last 50 years, the landscape has changed dramatically. New marketplaces have emerged, offering more opportunities for the publisher to increase sales and profits.
These new Retail Trade Markets are dominated by Mass Merchandisers, such as Wal-Mart, Costco, Kmart, Sears, TJ Maxx, Target, and more. It is this group and their unique requirements that I would like to discuss today.
When it comes to order fulfillment, the retail trade market has a very unique set of requirements. Each client may have slightly different requirements from each merchandiser – so as a part of Ware-Pak’s fulfillment services process, we maintain a 3-ring binder containing all of the specific requirements for each client and their respective mass merchandisers.
The mass merchandisers will grade each vendor on how well they follow the fulfillment requirements. Depending upon these results, the publisher will move up or down in a desirability scale with the merchandiser. The grade given by the merchandiser is very important because as the publisher moves up the scale, the more opportunities they will have to place new titles in the retail store. In addition to impacting future business, many of the mass merchandisers have implemented a system to fine the vendor for each infraction. These fines can cost thousands of dollars on each order.
Below are some of the most common requirements your order fulfillment partner needs to be knowledgeable of:
Special Labeling Requirements
Cartons being shipped into a mass merchandiser require each carton to be labeled with the Item #, Product Code or ISBN, Title and Case Quantity. This information needs to be embedded in a barcode for scanning purposes by the retailer’s distribution center.
ASN labeling requirements
When dealing with the Mass Merchandisers, it is a requirement to send ASN. Your fulfillment partner must have the capability to create a UCC128 label.
UCC128 labels are pressure sensitive labels that are affixed to each carton and/or pallet and provide information about a particular shipment. This label alerts the mass merchandiser about shipment information – who the vendor is, carton content, store ship to location, etc., – and it is a mix of both readable and scannable information. The UCC128 label on every carton is scanned at its destination and the information usually is tied to an Advance Ship Notice that has already been transmitted via EDI to the trading partner.
UCC128 labels follow a specific guideline set forth by the trading partner, and contain information adhering to the UCC (Uniform Code Council) and EAN (European Article Numbering) standard guidelines. This information helps aid your trading partners to automatically identify you within the global supply chain. By using the UCC128 label, vendors become compliant for trade throughout the world and across industry channels.
The most notable feature of the label is the SSCC-18 (Serial Container Shipping Code) found on every UCC128 label. This 20 digit number, human readable as well as scannable, allows a trading partner to not only identify you as a vendor but also provides information regarding a unique sequence for each carton.
Anti-Theft Security Strip
Some retail vendors require that there be an anti-theft security strip on the product before shipping it to their stores and distribution centers. There is specific location for the security strip and the order fulfillment center needs to have experience with the application of these strips.
Clip Strips / Counter Displays / Point of Sale Displays
Mass Merchandisers will often require that product be applied to a clip strip or that clip strips be included in the cartons. They will also require that counter displays and point of sale displays be assembled and loaded with the product before shipment to the store or distribution center. Ware-Pak is very proficient at assembling these displays.
Assortments
It is very common for the retail trade marketplace to order product in specific assortments. These are typically built-to-order projects, which often sound simple but quickly become cumbersome due to the volume of activity. You will want to check that your fulfillment house has a detailed written set of procedures for this process. In addition, each carton has a specific number of titles and should be placed in the cases in a specific order. The assortments may need to be shrink-wrapped or belly-banded together in the cases. Special labeling will be required on each carton that would list the Item #, Title of the Assortment, and the Quantity.
Giftables
In today’s business environment, marketing is key to achieving increased sales. The best publishers will carry T-Shirts and Giftables that will ship to the retail vendors, either as a free gift or as a salable item. Again, you will be relying upon the order fulfillment center to have the capabilities to price tag, pack, or fold these items in a way that allows them to be shelf ready when unpacked at the retail store.