One of the oldest forms of information technology – the book – may soon benefit from cutting-edge supply chain technology as two of its leading bodies explore eCommerce.

Australia's thousand or so booksellers are supplied millions of books by hundreds of publishers and already the industry has begun to implement electronic invoicing to speed its transactions and cut costs.

Phil Page, of the Australian Booksellers Association (ABA), said: “The major suppliers have implemented electronic invoicing, which allows us to receive books more efficiently than before – it can halve the time and cost. The smaller suppliers need to get behind this initiative if they don't want to be marginalised.

“Smaller bookshops are benefiting but this idea was originally driven by the discount department stores. We have taken the initiative recently by instigating a pilot for 'electronic returns', as new books are sold on a sale-or-return basis. The cost of returns is a major element of our operation.”

In fact, says Mr Page, the ABA is keen to consider new technologies that would lift the industry's efficiency and is “watching the development of radio frequency identification (RFID) applications”.

RFID is changing the face of retail around the world as its applications enable retailers to keep a close eye on both ordered, incoming stock and what’s on the shelves.

GS1 Australia, one of the largest not-for-profit organisations in the country and a significant player in the Australian eCommerce landscape, has championed the development of RFID applications in managing supply chains.

In 2006 it successfully led an Australian consortium in trialling the use of RFID to track goods from manufacturers through to the retailers in the fast-moving consumer goods sector. GS1 Australia has recently been working with the book industry to establish how retailers can use the GS1 system to make their businesses more efficient.

Books are currently identified using the International Standard Book Number (ISBN) often represented by what is known as a Bookland EAN bar code symbol. The ISBN is a unique number assigned to each edition of a book.

In the GS1 System, every trade item (product or service) is assigned a Global Trade Item Number (GTIN), a unique number that can be used to access information about that item in a database, often by inputting the number through a bar code scanner pointed at an actual product. This system is globally accepted as the most widely used supply chain standards system in the world.

If a book is tagged with an RFID tag, or chip, which has its unique GTIN, it may be individually tracked as it moves from location to location, finally ending up in the consumer's hands. Booksellers can identify each unique book so they know what stock has been delivered and most importantly, since loss of sales through lack of availability is a major cost, what’s not on the shelves.

While the book industry has had a longstanding relationship with GS1, both the ABA and the Australian Publishers’ Association have been in discussion with GS1 Australia on how to improve the Australian book industry supply chain.

Mr Page welcomed the connection with GS1. “Their knowledge about supply chain systems will be of great assistance to the book industry,” he said.

Sean Sloan, manager retail & logistics, GS1 Australia, said GS1 Australia was building strong relationships with key associations and organisations within the book industry. “By working together to create an efficient supply chain, we can help publishers and retailers achieve significant time and cost savings.

“Many companies appreciate the need to trade electronically, and are aware of the benefits, but taking the first step can be the hardest move. GS1 Australia has significant resources to help members, and non-members take this step.

“While the book industry has many pioneers and innovators, benefits need to be real and able to be realised. GS1 Australia has well-trained people who are familiar with eCommerce processes and the book industry can take advantage of their expertise to get real benefits,” he said.

*Excerpt from MHD Supply Chain Solutions May/June 2008 (p.26)

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