Unfolding daily savings

Europe's biggest newspaper unfolds daily sales forecasts to control costs

Bild, Europe's largest daily newspaper, boasts a circulation of 3.5 million, while its Sunday edition, Bild am Sonntag, sells 6 million copies. To manage numbers that big, German publisher Axel Springer AG builds demand forecasts with SAS® that show precisely how many copies each kiosk will sell from one day to the next. That way, vendors avoid selling out too early while the publisher avoids costly excess.

In addition to Bild, Axel Springer owns 230 publications, including Computer Bild, the best-selling computer magazine in Europe, and Sport Bild, Europe's biggest sports magazine. With 12 million readers each day, Axel Springer relies on predictive analytics to control costs and manage sales risk.

"For us, there is no real alternative to SAS on the market."

Walter Baum
Head of Analytical Information Systems at Axel Springer AG

Smarter insights, smarter decisions

The publisher relies on easy access to accurate demand forecasts to make smarter decisions about supplies and inventory. Forecasts for each sales location help Axel Springer set targets for returns and sell-outs. By analyzing sales data in a time series, the publisher can adjust those targets and clarify factors that influence sales.

"Holidays are an important influence factor," says Walter Baum, the publisher's Head of Analytical Information Systems. "Sales figures skyrocket in vacation regions during the summer months – whether on the Baltic Sea or on Majorca – sometimes dramatically. And during the IAA in Frankfurt, even the occasional customer reaches for the automotive issue Auto Bild. The more precisely we can foresee these types of fluctuations, the more profitable business will be."

Finding the connections

In addition to forecasting sales trends, data mining reveals hidden connections among data from different sources. For example, the demographic characteristics of a neighborhood play as important a role as convenient access to kiosks and the range of products they sell.

"We get answers to questions we had not even asked ourselves yet," says Baum. "This puts us in a position to continuously improve our processes."

The ability to combine different approaches, technologies and functions in a single source is unique to SAS, says Baum. "For us," he says, "there is no real alternative to SAS on the market."

Challenge

Stock each vendor with just enough copies of Europe's best-selling daily newspaper to meet demand yet avoid costly excess.

Solution

SAS® Business Analytics

Benefits

Reliable newspaper deliveries promote customer loyalty, while fewer returns increase profitability.

The results illustrated in this article are specific to the particular situations, business models, data input, and computing environments described herein. Each SAS customer’s experience is unique based on business and technical variables and all statements must be considered non-typical. Actual savings, results, and performance characteristics will vary depending on individual customer configurations and conditions. SAS does not guarantee or represent that every customer will achieve similar results. The only warranties for SAS products and services are those that are set forth in the express warranty statements in the written agreement for such products and services. Nothing herein should be construed as constituting an additional warranty. Customers have shared their successes with SAS as part of an agreed-upon contractual exchange or project success summarization following a successful implementation of SAS software. Brand and product names are trademarks of their respective companies.

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