Cut sought in fulfillment paper volume

Folio: The Magazine for Magazine Management, Sept 1, 1992 by Susan Hovey

Faced with dwindling storage space and a growing desire to cut down on paper waste, publishers are seriously beginning to explore electronic fulfillment reporting. In fact, if the trend continues, the next two years should bring a significant shift in the way circulation information is packaged and updated.

"We print about five minion report pages per month for our 350 clients - and about one million of those get tossed out almost immediately," says Gary Smith, vice president/information services for Boulder, Colorado-based Neodata Services, the nation's largest fulfillment operation. Although large fulfillment companies such as Neodata and Communications Data Services have had the capability to download information to clients for a few years now, most publishers have continued to rely on paper copies.

"It's like a security blanket," says Robert Cohn, publisher of Horticulture - which, like many titles, saves weekly reports for three months and monthly reports for three years.

Adds Anne Finn, circulation director of Weight Watchers: "Even though we may use only half of the reports we get, there is always the fear that if you cut one off, you'll probably end up needing it later."

Still, Cohn and Finn agree that as circulators grow more accustomed to handling information electronically, the use of paper back-up will diminish. "We want to deliver more data - and this is the only way to make that practical," says Smith, who estimates that Neodata will spend another $ 100,000 on top of the $30,000 already invested in setting up electronic distribution.

As for the cost to the client, he expects a trade-off between lower distribution costs and higher telecommunications expenses. Finn, however, cautions against another potential cost. "We have to make sure that the new people coming up through circulation are really learning the nuts and bolts and not just plugging the numbers into a computer. They can learn a lot by doing a P & L by hand."

All in all, though, circulators seem to be looking forward to the day when their magazines' fulfillment histories can be contained in a box of floppy disks. "I think this will streamline the process and improve productivity," Cohn concludes. "I hope it will allow people more time to reflect on the business."