Bonnier Publishing Australia partnered with Fenway Group to rationalize its stock and transition to a new distribution model. Using ABC analysis, they identified slow-moving inventory and discontinued stock. Management then made decisions to right-size inventory based on sales data and business needs. Despite challenges, the team was able to dispose of aged stock and transfer best-selling items to the new distributor within tight deadlines. This transformation helped Bonnier focus on its core publishing business and realize 25% savings in distribution costs.

1. Fenway Group Pty Ltd | Bonnier Publishing Australia – September 2016 1
Case Study: The Power of Client Innovation
Bonnier Publishing Australia
Executive Summary
SKU Rationalisation using ABC analysis and innovative thinking in partnership with my client helped
them to take control of their distribution model, rationalize a substantial amount of stock, and set up
their business for a strong and vibrant future – a transformation back to its core of publishing and
marketing great books. Bonnier transferred to the new 3PL distribution partner only the stock that fit
their ongoing plans, and gained flexibility to invest in the future.
Key learnings:
 Introduced ABC concept and led the client through the initial analysis
 Encouraged the client to alter it to suit their business which drove ownership and achievability
 Continued focus in partnership with sales ensured success despite the challenge of legacy
inventory management systems
How We Achieved Success
Once the 3PL partner was identified and negotiations completed, we turned our focus to right-sizing the
inventory holdings. This was critical not least because the new partner would be charging Bonnier to
store the product, but also the team didn’t want to spend heavily on transporting aged / unneeded
stock from Melbourne to Sydney, and they wanted to make a fresh start.
Introducing ABC
The first step was to introduce the framework of the analysis, which simply entailed performing a rough
SKU level ABC analysis. We used sales data, but to be honest it didn’t really matter as the key was to get
the client thinking about contribution of its SKUs to its sales and gross margins, and juxtaposing that
with both seasonality and ranging needs.
Tailoring the Concept
Having absorbed the analysis and its rationale, the detailed analysis took several weeks and involved the
entire management team. The CEO and Sales Director led that effort, making decisions effectively to fit
their business going forward. The CFO and Board were consulted to ensure decisions could be supported
financially. This galvanised the entire team to follow through on SKU rationalisation.
Continued Focus to Achieve the Goal
The final step was to dispose of the aged and discontinued stock. This required continued focus in
partnership with sales to ensure success despite the challenge of legacy inventory management
systems. This overlapped with the physical move of A and B stock to the new 3PL partner in Sydney –
which in itself was an enormous challenge given the time frames provided (50 B-doubles in 25 days).
And the team continued to service our order flow during an increasingly busy time gearing up for both
Father’s Day and Christmas, only seamlessly switching between the old warehouse and new 3PL partner.

2. Fenway Group Pty Ltd | Bonnier Publishing Australia – September 2016 2
The warehouse team literally picked and packed and shipped 6,000 pallets in less than 2 calendar
months, often needing to combine or mix pallets. The Sales Director kicked goals both locally and
internationally, and as GM Supply Chain, I kept the warehouse team upbeat and focused, despite the
continual challenges of losing good people to new opportunities, confronting a previous lack of
inventory management discipline, and needed to dispatch literally by hand due to failing legacy systems.
As the warehouse emptied, the ‘rocks’ emerged – long ago written off SKUs, samples, displays and
components, even old ULDs full of previous owners’ belongings and AS400 monitors! Regardless, the job
was completed on time and largely under budget, many thanks to the Bonnier executive team as well as
the diligence of the leaders in the warehouse and the operations team.
About Bonnier Publishing Australia and Fenway Group
Bonnier Publishing Australia (formerly The Five Mile Press and Echo Publishing) operates as an
independent publishing house with the backing of a global network. The Australian division of Bonnier
Publishing (the fastest growing publisher in the UK) represents UK sister-company imprints as well as
creating a successful and exciting local publishing program under Five Mile, a 25-year old children’s
imprint, and Echo, a new voice in the Australian adult fiction, narrative non-fiction and illustrated non-
fiction categories. The business is driven by the belief that books have the power to transform and
enrich the lives of all and strives to deliver this universally, without compromise. CEO Natasha Besliev,
formerly MD of Hardie Grant Egmont, came on board in 2016 with a remit to revamp the business with a
focus on costs, working capital and ongoing market development.
Fenway Group assisted Bonnier in this transformation project over the course of 7 months, outsourcing
its distribution operations to a Sydney based book distribution specialist. Fenway MD Andrew Lewin
served as Bonnier Australia’s interim GM of Supply Chain and led the transformation, from developing
the strategic remit to effecting the warehouse transfer, resulting in 25% savings in distribution costs.
Fenway Group is a family-owned and run consulting business established in 2005, successfully consulting
to corporates $50m - $500m for almost a decade. Most recently projects have included partnering with
clients through Interim GM roles to deliver transformational change.