Reno, Nev.

Observed from 30,000 feet, the modern system for delivering manufactured goods appears little changed from what it was 30, 40, 50 years ago—trucks roll, trains rumble, ships ply the harbors and canals. Only a closer view reveals the logistical revolution made possible by rolling stock, just-in-time ordering and outsourced production. Similarly, the average consumer picking up the latest best-seller at their local bookstore is unaware of how book distribution models are changing. While the book they hold in their hands may adhere to the old “print-and-deliver” model, for instance, the one next to it may have been “deliver and print,” as in large distributors

Book manufacturers and publishers used to squeeze each other to cut costs at the other's expense. Now they are cutting costs together in partnerships of convenience. Welcome to 2004. It's like 2003, only the recession's grip has lessened. Production managers continue to shave a penny here, save a dollar there, while keeping up hope that the vaunted recovery will hit their employer's slice of the book publishing industry soon. Meanwhile, large retail and bookstore chains are returning books by the truckload, according to industry regulars. This dilutes revenues and increases costs for the publishers, leaving them with diminished cash flow and pinched

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