Pearson Education consolidates operations to achieve savings
When the Pearson Australia Group needed one supply chain system to handle consumer demand and a diverse product line for the group's two major divisions, the international media company looked to IBS for a solution.
Company background
Pearson Plc owns the world-famous Penguin books label, while its most profitable division, Pearson Education, is the world's leading education company. In 2002, Pearson Education and Penguin Publishing merged to form the Pearson Australia Group, a decision that made good sense as both companies shared customers, suppliers and even titles.
The territories covered include New Zealand and Australia and involve six major trading sites and two currencies. The company employs around 800 people in Australia and New Zealand with a turnover of approximately AUD 250 million.
Business issues
Within educational publishing, customers want choices that include electronic and online products – such as packages (books bundled with a CD), or books bundled with a PIN number for a website. These components required enormous manual effort throughout a product's life.
This diversity of products is mirrored in the consumer trade market with Penguin marketing novels, coffee table books and electronic products. The Penguin line is also strong in the children's market, offering not only books but also novelty products such as toys. This also requires strict production and administrative control.
Pearson Australia realized that it needed a system that would integrate all its activities, covering finance, distribution, royalties and book production. The extensive list of requirements also included delivery of a book production system, automatic assignment of ISBN numbers and the ability to retain detailed information for reprints.
The group's additional need for a timely ROI called for an overall supply chain solution to handle a network of demands and eliminate duplicate tasks. Under the old system, information about title, author, ISBN, price and availability would be entered separately for both production and distribution purposes, and possibly once again for payment of invoices. For estimating purposes, a simple request for a price from printers also created diffi culties. Once a printing request was made, Pearson had to wait for a reply, convert it to Australian dollars and then key it into the estimate – a very time-consuming process.
Pearson's objectives for a new solution had to suit both divisions' requirements, be flexible enough to cope with all six sites and at the same time be fully integrated into the fulfilment and financial system.
Solution and capabilities Pearson discovered IBS BOOKMASTER, a ERP solution that provides cost-effective ways to meet specifi c publishing requirements.
IBS BOOKMASTER has allowed us to eliminate duplication of effort and our book production time has decreased by 10%.
Peter Dart
Information Services Director
Pearson Education Australia Group
Solution and capabilities
Pearson and IBS also formed a partnership to further develop the editorial book production solution within IBS BOOKMASTER.
IBS BOOKMASTER is a powerful publishing and book distribution system that helps many publishers and book distributors drive down operational costs, improve production processes and fuel business growth. Today, the publishing industry runs at a faster and more demanding pace, under pressure to offer quicker turnaround times.
Publishers and book distributors compete for sales in a saturated marketplace, while striving to keep up with changing consumer tastes.
IBS BOOKMASTER meets these challenges with an integrated distribution solution that allows Pearson to easily manage its entire distribution cycle, enabling profi tability on every item of stock. IBS BOOKMASTER also assists in the company's business decisions by offering easy tracking and analysis of every business area. This ability to readily access precise information helps minimize expenditure and stock wastage.
IBS BOOKMASTER provides a comprehensive database embracing full details of all books published – with author, illustrator, physical specifi cation, printing location and project team now all available in one location, for instant access.
Implementation
The implementation of IBS BOOKMASTER and the development of the Book Production module has been a success. Pearson has achieved many signifi cant cost savings and efficiencies, in addition to controlling all six centers under one integrated ERP system.
Most noticeably, automating the book production process has eliminated duplication of effort. This has freed up employee time, increased efficiency and lowered costs. The elapsed time from conception of a complex textbook to its production has been reduced from 10.13 to 9 months, a decrease of over 10 percent, which can in part be attributed to IBS BOOKMASTER.
Benefits and value
Chargeable time to individual projects has increased from 60 to 65 percent per annum. Cost allocations to individual projects, along with tighter control of inhouse costs, have also sharpened Pearson's competitive edge in the market place.
The flow of information has improved the predictability of delivery dates and invoice processing is faster and easier. Control of budgets has also tightened, as any cost deviation is immediately visible.
Pearson gains added benefits using the printer grid functionality. Print prices are automatically generated into estimates – saving production staff at least two hours per project per year. All reports are now uniformly presented, allowing easier comprehension, faster compilation and more immediate and effective correction actions.
Overall, IBS BOOKMASTER has helped Pearson tighten up its whole operation from a loose-knit conglomerate into a fully integrated and tight knit organization.
Contact IBS for more information. »
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