Extra! Extra! Berlingske Media balances production, demand with SAS® Forecast Server
Berlingske Media, Denmark's largest news publishing group, publishes nearly 15 national, regional, daily and weekly newspapers. While providing balanced news coverage to Danish readers, Berlingske uses SAS® Forecast Server to strike the right balance between the amount of papers it produces and consumer demand -- helping the media giant decrease production costs, reduce stock-outs and surplus, minimize lost sales, and increase its margins.
The need for better forecasting
The media company needed a flexible forecasting solution that could consolidate aggregated data at the top level – and at the retailer level – to determine its production and delivery numbers.
In-depth analysis, accurate reports
SAS harnesses SAP data on retailers, publications and sales to better forecast production and delivery. Berlingske can recalculate models each week based on sales numbers to forecast future delivery requirements.
As its usage evolves, Berlingske expects to factor in data from campaigns, such as bundling newspaper sales with other retailer products and TV advertising, to better understand the effect of the campaigns and the variations in sales.
The company says the savings in delivery are considerably higher than the value of lost sales. Each percentage point saved in returns reduces costs by DKK 1 million (about US$174,000) per year, assuming lost sales decrease or stay the same. Payback on the solution is estimated at under one year.
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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Consolidate data to determine demand and sales trends, in an effort to increase its margins.
SAS Forecast Server
Reduced delivery volume, maintained sales and achieved higher margins, and saw a payback on the solution within the first year.
“"You can save a lot of money by using SAS Forecast Server. Automation reduces manual processes and corrections regarding delivery. People often have difficulty trusting a system to make forecasts, but they should let the software decide and only override in special cases. Five years ago we made many manual changes, but 80-90 percent of the changes lost us money."”
Bjørn Nedergaard Jensen
Senior Business Analyst, Sales and Marketing