The Single Copy Magazine Channel A Fresh Look

COSMAR - Cooperative Standards

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3. COSMAR. Cooperative standards - agreed to and implemented by all participants in the supply chain - are necessary for achieving Stage 1 and Stage 2 benefits. We have called these standards COSMAR for Cooperative Standards for Magazine Retailing.

Full implementation of COSMAR will require changes and new approaches on the part of all trading partners. For example:

• Retailers will need to capture and process sales by issue, minimize dummy key transactions, and transmit item level sales data to publishers and national distributors in an accurate and timely fashion through the use of EDI
  
• Wholesalers will need to improve picking accuracy so that retailers and wholesalers can realize the cost savings associated with summary check-in and efficient returns processing
  
• Publishers and National Distributors will need to meet more rigorous quality standards regarding UPC accuracy and data integrity.
  
• All trading partners will need to assume responsibility for the portion of shrink they control. They will also need to improve efficiency through more targeted assortments, and ensure more accurate and timely replenishment.

4. Pilots. Pilots are necessary to confirm the benefits and define the detailed
requirements for implementing COSMAR.

Next Steps

Full implementation of COSMAR will require changes and new approaches on the part of all trading partners, and Mercer has recommended that pilot tests be conducted to confirm the benefits. The search has been on for major grocers and discount chains, along with their trading partners, who have the capabilities to support the full COSMAR testing. Ac crucial element of COSMAR that supports scan-based trading is the retail scanning of issue code, but Y2K problems and other priorities have delayed implementing this approach.

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