I’ve heard that NDD is this week considering moving to the First Fleet organisation for the packaging and distribution of the magazines they represent. Such a move would most likely lead to a cut in the number of distribution days. Currently, NDD product can be delivered five or six days a week. Under a First Fleet arrangement I would expect this cut to one or two days a week. This would impact newsagent customer service and workflow.
Publishers who moved to NDD because they did not want the First Fleet restrictions would be unhappy.
First Fleet does not deliver everywhere. Often newsagents in previously serviced remote locations have to travel some distance to collect product which previously was delivered to their doorstep.
Newsagents, publishers and even major retailers such as Coles and Woolworths will recall the impact on their businesses when Gotch and Network made the move a couple of years ago. In some states it was six months of disaster. Newsagents, collectively, lost hundreds of thousands of dollars. I know of one major retailer who threatened a major compensation claim at the time – not sure that that proceeded though.
Gotch and Network moved to First fleet to cut costs out of their operation. Project Hero it was called. The hero was their P&L – the move was most successful so it’s logical that NDD looks to achieve the same gains.
Given that its current distribution arrangements are a point of difference I am surprised NDD is seriously considering this move.
From a newsagent perspective it could be another reason to rethink carrying NDD product at all.
This is bloody disappointing to say the least – the one glimmer of light at the end of the distribution tunnel has been that we can generally rely on NDD deliveries at least 99% of the time (only 2 problems in the last 12 months).
Network and Gotch deliveries have been a disaster for us ranging from total consignments missing, bulks of weeklies missing or carried over, individual bundles missing and late.
What I have noted is that the invoices never arrive late, get carried over or fail to make the statement.
I forgot to mention that these problems with Gotch & Network deliveries occur on a weekly or twice weekly basis and we can spend hours on the phone, emailing or NetOnline trying to resolve issues as we fill log books with issues and reference numbers not to mention reconciling statements.
It does help us use up our stock of those useless little GNS exercise books though 😉
Simply put, NDD’s strong distribution model is the only thing going for them. If their deliveries fall to the standard of Gotch and NDC it will be a sore disappointment.
I don’t know if the same applies to the ACT? We receive deliveries from all 3 major distributors each Mon, Wed and Fri. Only a couple of titles arrive Thurs and we receive nothing at all on Tues. I thought all newsagents were like us – however I must be wrong. When do you receive your publications?