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DEG Works With Studios to Improve Supply Chain

18 Mar, 2008 By: Chris Tribbey

DEG: The Digital Entertainment Group is bringing retailers and studios together in an effort to reduce inefficiency along the supply chain, especially right before and after DVDs and Blu-ray Discs hit the shelves.

Partnering with research firms Capgemini and Teradata, the DEG's Operations Committee worked with senior executives at all six major studios' home entertainment divisions, as well as those at Lionsgate and Image Entertainment, to produce a proprietary study that “showed numerous opportunities to improve the relationship between retailers and the studios, as well as enhance the purchasing experience of consumers.”

“This study reveals a rich and candid assessment of the home entertainment supply chain,” said Bill Segil, vice chair for the DEG Operations Committee and SVP of worldwide operations for Walt Disney Studios Home Entertainment. “We are proud that the home entertainment industry worked together to study this critical component of our supply chain. The study showed that optimizing the supply chain provides for an industry-wide benefit.”

The DEG plans to use the study help both retailers and studios to improve their supply chain performance and better forecast the performance of titles.

“It is crucial to the success of the entertainment supply chain to promote open dialogue between studios and retailers,” said John Quinn, chair of DEG's Operations Committee and EVP of worldwide operations for Warner Bros. Interactive Entertainment Group. “This study was the first step in identifying problem areas and working together to solve them. We are grateful to our retail partners for their open participation in this important study which we believe will lead to improvements in supply chain efficiency.”

“The substantial level of support received from the studios, merchandisers and retailers underscored the significant value in conducting the industry-wide study,” said Theodore X. Garcia, strategy and transformation lead for Capgemini's media and entertainment division.

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